Disability Insurance
Protecting You Against Loss of Income
Disability insurance can provide you with financial security in the event that an accident or illness causes you to become disabled and unable to work.
Unfortunately, accidents and illnesses are a fact of life. On average, one in three people will be disabled for 90 days or longer at least once before they are 65. As well, for a disability that lasts over 90 days, the average length of the disability is 2.9 years.
What are my options?
There are both personal and business disability insurance solutions which offer the flexibility you need to help bridge the gap between income and expenses during a disability.
To help you make your decision, there are some things you should consider.
Disability Insurance Recommendations
Disability insurance provides financial support for you if you become disabled, and it is an important part of your financial wellbeing.
This insurance is generally owned personally and funded out of your personal after-tax dollars so that any monthly payouts would be free from personal income taxes.
How much attention should I pay to the wording of the contract?
The fine print is very important. It is critical that you are comfortable with the insurance contract’s definition of disability. For example, will the policy cover you if you are disabled and cannot do your “own occupation” or if you cannot do “any occupation?”
What does this mean? Well, imagine you are a cardiac surgeon and your policy covers you if you cannot do “any occupation.” This means if you are still well enough to work in a totally different job, you would be expected to do so as the disability insurance policy would not pay you an income.
How often should I review my disability insurance coverage?
At a minimum, you should review the coverage at milestones in your life, such as finishing medical school, finishing residence, getting a job promotion, getting married, having a child or if your spouse dies.
You should speak with your financial advisor for more details. If you do not have a financial advisor, we would be pleased to recommend one to you.