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23. Own-Occupation Disability Insurance: Do I need it?


Hosts Corey Janoff and Rachelle Vanderzanden dive into detail on the important topic of own-occupation disability insurance.  Many doctors have heard from somewhere that they need this, but do they really?  When should you get it and why? 



What is it?  Long-term disability insurance is income protection.  If you are unable to work for a few months, a few years, or even suffer from a career ending injury or illness, it will pay out a specific benefit amount.  Own-occupation physician disability insurance specifies that you are considered disabled if you cannot do your job, even if you can still do something else. 

Do I really need disability insurance?  Short answer - yes.  As a young worker, you build your entire financial plan around an assumption that you will make income in the future.  With physicians, that income is generally a very large dollar amount.  If we took that out of the planwhat are the chances that it would work? 

When should I get coverage?  Yesterday.  Or the day before you get disabled, but we don’t know when that is.  There are two big risks to waiting, 1) you could get disabled without coverage and 2) a medical condition, injury, family diagnosis, or other risk factor could come up that makes it much more difficult, or even impossible, to secure coverage. 

How do I get started?  There are a handful of companies that offer strong, own-occupation disability insurance coverage.  Work with an independent agent to try to find the carrier that works best for you based on cost, underwriting requirements, and what you want in a policy. 

 

Tip of the Day:  If you need your income, you need disability insurance.   

Thanks again to the Financial Clarity Blog, our amazing clients, and the whole team at The Finity Group. 

For more financial planning tips from Corey and Rachelle find them on LinkedIn: @CoreyJanoff and @RachelleVanderzandenInstagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter:  @CoreyJanoffCFP and @RachelleFinance  

Discussions in this show should not be construed as specific recommendations, legal, or investment advice. Always consult with your investment professional before making important investment decisions. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.