We speak with hundreds of physicians every year who are interested in disability insurance, and the number one mistake made is waiting too long to apply for coverage. Nearly once a day, we speak with someone who is interested in purchasing disability insurance but is no longer eligible because of a recently diagnosed medical condition – typically an unexpected illness and one that may realistically prevent that person from working at some point.
It is easy for individuals to rationalize why they don’t need disability insurance when they have perfect health, but ironically this is the best time to purchase coverage. When someone is extremely healthy, they are more likely to qualify for standard rates, without requiring exclusions or limitations for pre-existing conditions. As a person’s medical history becomes more complex, the chances of qualifying are reduced.
The most common excuse we hear from people who decide against disability insurance is the high cost, but for just a moment consider the alternate. What is the cost of not having coverage? The average price of a long-term disability policy is 2-3% of a person’s annualized income; which means someone earning $100,000 today, can protect his/her income by paying premiums of $2,000-$3,000 each year. If a 30-year old earning $100,000 today never receives a pay raise throughout his/her career, the earnings potential by retirement age is $3.5 million. So which is more costly, premiums of $2,000-$3,000/ year or the risk of losing $3.5 million in future earned income?
The chart below provides a list of professionals who made the decision to buy disability insurance, and thankfully so. As the chart illustrates, many of these disabilities were suffered just a short while after purchasing a policy. We encourage you to stop delaying and call us today at 800-817-4522 .
| Actual Paid Claims* | ||||
|---|---|---|---|---|
| Occupation | Gender | Age Policy Issued | Age at Claim Onset | Disability Diagnosis |
| Surgeon | M | 31 | 33 | Bacterial meningitis |
| Dentist | F | 39 | 42 | Multiple sclerosis |
| Radiologist | F | 42 | 47 | Malignant breast tumor |
| Obstetrician | F | 45 | 48 | Obstetrician |
| Orthodontist | M | 43 | 49 | Stroke |
| Optometrist | M | 53 | 56 | Stroke |
| Physician | F | 55 | 60 | Malignant thyroid tumor |
*Claims paid for by Berkshire Life Insurance Company of America, a Guardian company. Every claim is unique and must be evaluated on its own merits. Elimination Periods vary. The diagnosis of these medical conditions alone does not entitle an individual to disability benefits. A person’s eligibility for benefits is determined on a case-by-case basis according to the terms and conditions of his or her policy. Pub3748BL
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