Disability Insurance

The good news is that you'll probably be able to do something.

The bad news is that your income may not be the same.

 

95% of the time, people return to work for reasons other than improved health.  

Reasons for Returning to Work

Social Security Administration; Industry, Occupation, and Disability Insurance Beneficiary Work Return; Social Security Bulletin; Vol. 62, No. 1; 1999; p19.  Among other reasons, 19% because they wanted to work, 11% because rehabilitation made work possible, and 8% for other reasons.

It's about the income

If you're in a cognitive occupation, your job stability and earnings are ultimately based not on whether you can do the job, but how well you do it.   Residual effects of a health problem can prevent income from rebounding to prior levels even though your ability to work in your occupation is not in doubt.

 

How much of your income is from bonuses, commissions, or client fees?  Even with a full recovery, how long would it take for incentive compensation to recover?  

Security

After some period of observation, your employer or business partners may not see it working out.   If that happens, what will you do for coverage?  Job instability is a major concern in return to work scenarios, especially for the highly compensated that desire a high degree of flexibility when returning to work.

Making your own choices

Are you a workaholic?  If you have a strong work ethic, you will probably focus on what you can do rather than what you can't.  The trick is having the kind of disability policy that doesn't financially penalize you for doing so.  After investing in a certain career, you may feel that it's only right that those gains be locked in.

The main risk is the instability that follows a return to work.   These losses are more permanent and are not what group LTD is designed to address.

Disability Underwriters

1420 5th Avenue   Suite 2200

Seattle, WA     98101

(206) 673 2219