Rebecca, a 35-year old cardiologist was at the top of her career, until she injured her back while helping a friend move. As a result of this injury, Rebecca was no longer able to perform her duties as a cardiologist, and as a 50% business partner of the practice. Rebecca was fortunate, in that she protected her income and her business with disability insurance.
Rebecca had purchased an individual policy to protect her personal income and a business overhead expense policy and Disability buy-out policy to protect her business interest from Guardian Life Insurance, one of the premier companies offering own-occupation disability income insurance for professionals.
Her individual policy paid her $14,220 a month (once she satisfied the policy’s 90 day elimination period). The cost of living adjustment rider will increase her benefits annually (3% compounded), so her benefits can keep pace with inflation.
As a business partner, Rebecca was responsible for 50% of the overhead, which was approximately $100,000 a month. Her overhead expense policy reimbursed her $50,000 a month so she could continue to pay her share of expenses, which included employee salaries, rent, utilities and equipment rentals. Even though Rebecca couldn’t work, she was able to keep the business afloat with this coverage.
After being out of work for a year, with slim hopes of full recovery, her business partner voiced concern about the future of the business, specifically his ability to continue covering future expenses and running the business without Rebecca. Fortunately, her Disability Buy-Out policy provided $560,000 to her business partner (after the 360-day elimination period) in order to buy out her share of the business.
Rebecca continued to receive her monthly benefits from her individual policy and will continue to do so as long as she remains unable to perform the duties of her occupation, even if she chooses to go into another field, such as teaching.
Unless you have experienced a disabling injury or illness or know someone who has met with this misfortune, the need for disability insurance might not seem real to you. For that reason, Guardian (as well as other insurance companies) publishes these real stories, not for the sake of scaring you, but to bring the reality of disability closer to home. If, by continuing to publish these stories, we have made the need for this type of insurance more real to you, we have done our job. If you would like to receive disability insurance quotes, LifeInsure.com is here to help.
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