Those people who are in business for themselves or are professionals such as doctors, lawyers, dentists, accountants, should consider purchasing a private (individual) disability policy. A private (individual) disability policy is added protection for you and your family should you become disabled and unable to continue working.
But, not all private (individual) disability policies are equal, and the amount or type of coverage they offer depends upon the type of policy you purchase, the amount you spend, and the insurance carrier you purchase it from. Making the purchasing decision requires a good deal of research, as well as determining the specific needs of you and your family.
Unfortunately, many of my clients are at a loss when it comes to fully comprehending exactly what type of policy they have. Some have never read it carefully enough, and others do not bother to review it periodically for changes in eligibility or limitations. If and when they become disabled, too many are surprised when they learn about what these policies, often expensive, actually do cover.
Things to think about before purchasing a private (individual) disability: plan:
- Make sure to read any policy carefully (especially the fine print)
- When purchasing private (individual) disability insurance, make sure you have the right coverage as well as the right amount of coverage.
- Always plan ahead; keep your changing personal and professional needs in mind.
- Consider purchasing a Premium Waiver Benefit on your Life Insurance Policy. This means that your Life Insurance Policy will continue to cover you at no charge during your disability.
- Consider purchasing a Business Overhead Policy. A Business Overhead Policy will cover your business expenses such as rent/mortgage, salaries, equipment, etc., during the time of your disability.
- Review your policy (or policies) regularly for changes in eligibility and limitations.
I often consult with clients before they make the decision to purchase a private disability policy, and handle their applications should they suffer a debilitating disability.