Approximately 375,000 people in the United States become totally disabled every year. A 35 years old has a 50 percent chance of experiencing a disability for 90 days or more before he or she turns 65. Most individuals in America have planned better financially for their family in case of death (often with life insurance) than if they should suffer a long term disability. This is despite the fact that the chances are at least three to five times greater (depending on age) that a disability will occur vs. dying before age 65. For more disability statistics click the following link to go to this web page.

Ok, so you are smart enough to get a good individual disabiity insurance policy with all the right bells and whistles such as the own occupation definition, residual disability benefits including recovery benefits as in a Guardian Life Insurance disability policy or Berkshire Life Insurance disability policy. You get disabled and you receive benefits and live until 65. What’s missing? Your retirement money. When you became disabled you no longer had earned income and you and/or your employer stopped making contributions to a retirement plan like a 401(k), SEP, profit sharing or other pension plan. What could you do about this? There’s an additional new disability program available through disability insurance companies represented on the protectyourincome.com site that will cover your retirement contributions up to $3,500 per month ($42,000 per year) if you’re disabled. This would be in addition to any disability insurance you already have. The way this program works is after disability and after 6 months or 12 months of disability (depending on how you set it up) the contributions - up to $42,000 per year, go into a trust for you for retirement. When you get to age 65 the money gets paid out as a retirement benefit. If you should die before age 65 your heirs would get the value in the fund. It’s a great idea. It really could be a multi-million dollar idea when you add up what it could be worth to your retirement. You can learn more about this on the protectyourincome.com site (click the following link) : disability retirement protection.

Are you aware that there’s a component in your social security benefit that’s a benefit in case you’re disabled which is in essence a government long term disability insurance policy? This benefit allows a person, no matter their income, to apply for Social Security Disability Insurance if they are disabled. But there are certain important points to remember about social security disability insurance: 1. You have to have been at work for at least 10 years before you are disabled in order to to collect the benefit after becoming disabled. 2. The requirements to receive disability benefits are strict. Approximately 35 percent of the people that apply for social security disability benefits actually get those benefits. Prudent planning would have you obtain as much private disability insurance as you can get that covers you in your occupation with a residual (partial) benefit to cover you when and if you recover. 3. The Social Security disability Insurance program pays $722 per month on average.

As a doctor, not only should you have an occupation definition of disability in a disability insurance policy, you should have an insurance company with a “specialty definition.” The occupation definition of disability states in general (exact wording depends on the company): “Pays benefits if you are unable to perform the material and substantial duties of your own occupation due to sickness or injury…even if you are able to do some other kind of work.” If you’re a physician who has limited his or her practice to a recognized specialty, here’s what one leading disability insurance company says: “if a professional has limited his or her practice to a recognized specialty, that specialty will be considered his or her occupation for the purposes of the contract.” The experts at protectyourincome.com (866 691-0100) can show you disability insurance companies that include both occupation and the specialty definition of disability in their policies for physicians and dentists who have limited their practice to a recognized specialty.

One of the primary areas a surgeon should consider in a disability insurance policy is a true own occupation definition of total disability. What does an “own occupation” definition of disability mean? Simply stated, it is defined by one major disabiity insurance company for a surgeon that if you have an injury or illness, you will be considered totally disabled if you are unable to perform the material and substantial duties of your occupation, even if you are at work in some other capacity for the first five years of a claim. With this same disability insurance company, after five years in a specific claim, the definition of total disability changes to a modified own-occupation contract. While under the modified own occupation definition (after 5 years) the insurance company can not make you return to work in another occupation but if you do choose to go back to work in another occupation then the benefit may become pro-rata to your earnings (a residual benefit). This is one of the disability insurance companies that Protectyourincome.com recommends for many reasons beside the definition of disability, some of which are strong financials and other important provisions in the policy including how you’re paid during recovery when and if you return to work. Another further amplification of the definition of disability can be as follows, again as stated by this same major company: “If your occupation is limited to a single medical specialty certified by the American Board of Medical Specialties we will deem your specialty to be your occupation.” Learn more and get your questions answered regarding this vital subject at protectyourincome.com or call toll free to 866-691-0100.

1. Statistics show that most people, no matter their income, spend or have financial commitments that use up 65 percent to 75 percent of their cash flow. Many people spend 100% of their cash flow. If you just think about your level of monthly financial living expenses and commitments you can see that you that something has to replace that cash flow if you’re disabled. Get disability income insurance of at least 60 percent of your earned income. If not how will your monthly commitments be paid? 2. Here’s some simple arithmetic: Basic financial planning says your should save a minimum of 10 percent of your income each year. If you are disabled for just one year without earned income you wipe out approximately 10 years of savings.