For most professionals and business owners, Private (Individual) Disability insurance should be a part of the cost of doing business. Comprehensive Private Disability insurance protects you and your family in the event you should ever become disabled and unable to work in your chosen field or run your own business. However, be aware that not all Private Disability insurance is created equal, some are better than others.
If you’re thinking of purchasing Private Disability insurance, there are some things you should keep in mind. First, determine what your needs are, and make sure the insurance you choose provides the right amount of coverage for you and your family. When deciding what you need right now, remember to plan ahead. Your life, no doubt, will change in the next 10-30 years, so any Private Disability insurance you buy now should allow for those changes.
Once you’ve decided on the right Private Disability insurance, you might consider also purchasing a Premium Waiver Benefit on your Life Insurance Policy. A Premium Waiver Benefit means that your Life Insurance Policy will continue to cover you at no charge during the period of your disability. Although this may be something that often is overlooked, it can be a great benefit to you if you’re not making an income.
Something else to consider is a Business Overhead Policy. A Business Overhead Policy covers your business expenses such as rent/mortgage, salaries, equipment, etc., during the time of your disability. Aside from providing financial support and stability, having a Premium Waiver Benefit and a Business Overhead Policy also can help to relieve some of the stress that always results from being ill or disabled and unable to work.
Of course, it is important to remember that no matter how comprehensive your Private Disability insurance is or seems to be, you will need to read all of the fine print before making a purchase decision – the devil really is in the details. And, after you’ve purchased this insurance, review it periodically for any changes in coverage. You do not want to be caught by surprise if and when you ever need it.