Totally fair.
For all of us busy doctors, the necessity and obviousness of buying disability insurance, *ehem*, income protection insurance makes you feel like you can get to it when you get to it because you know you will, so ... what’s the rush?
Or, is it our desire to bet on ourselves, and every month that goes by without insurance is one less payment? Roll the dice! Woo!
The reason to not put off the important things in life
I will give you a few reasons of “the why of” how we can all benefit from disability insurance and the reason there is no benefit in waiting to get a policy.
But, most importantly, I want to talk to you about your life and why you are putting off a lot of important things.
That diet you’ve been wanting to start? Yep.
That ring you haven’t purchased? Maybe that!
That article you’ve been meaning to write for the GI journal? Yes, especially that.
Remember: Take a deep breath in and exhaaaaale.
So, why do we put off the important?
First, even though the “why” of purchasing income protection is a bit basic, I do find it helpful to have discrete reasons for accomplishing an important task.
Why get disability insurance at all?
Let’s look at the value we get out of covering our income.
Reason No. 1. It softens the landing in the event you have an illness. The stats on disability claims are heavily on the side of illness over accidents or trauma. As you know, many autoimmune conditions show up in the 20’s and 30’s, so those are the things your friends will have first.
Unfortunately, if you have a medical issue before you have a disability policy, you will either not have coverage for that specific condition or you will not be approved for insurance. Unlike health insurance, the company can afford to pay out policies because it is picky on who it is willing to cover. It tries to select healthy people, so apply when you are most healthy, if possible.
Reason No. 2. It’s cheap. When you compare with a $2 million policy for life insurance, it might cost $1,000-$2,000 or so per year for a term policy covering about 25 years. With disability insurance, you can cover about 10x as much for the same annual payment. One could easily make a case that if you do not have dependents, disability insurance should be your first stop even before life insurance. You are more likely to be disabled than to die when you’re in your thirties. Act accordingly.
(Please note for obvious reasons they don’t call life insurance “death insurance.” Disability insurance needs that same rebrand – I’m telling you!)
Reason No. 3. Unless you are independently wealthy, it will be nearly impossible to replace your income and live a similar lifestyle. Lock in the benefits of the work you have already accomplished, and lock in the coverage of ALL of your health while you are healthy.
