Disability Insurance Policy
The often-unsung hero of many wealth management strategies is a comprehensive disability policy. This isn’t well advertised, since most Insurance Agents receive far less commission from selling you one of these policies than they would from some life, long-term care, or other instruments of risk management. However, the benefits are immense and the costs are relatively minor by comparison.
The fact is that people are living longer and they are also working longer. An untimely accident or setback be it mental, emotional or physical can put a big hurt on even the most well-orchestrated of plans. Especially if you plan on ‘working through retirement’.
Choosing a Disability Policy
There are various kinds of disability policies and you should consider what you may need a policy to cover. Do you need it to cover part of your income, all of your income, or your retirement plan? There is even a type of business overhead disability plan that helps pay to keep ‘the lights on’ while you are away, or only working part-time. Disability plans can layer benefits for both yourself and a group, provide provisions that cover business overhead, as well as additional custom options that are typically much more affordable than standard life insurance.
Disability insurance specifically covers you when you are simply unable to perform your essential work duties. This is a good alternative or addition to Stop Loss or Business Interruption Insurance.
Some of the newer contracts have a return of policy provision, and depending on how it is structured, there can also be significant tax advantages.
These policies have come a long way in just the last 20 years, and it is meritorious to learn more about including them in your management plan.
Hopefully, any policy will provide a safety-net, and peace of mind, so that you can keep on enjoying life to the fullest!