Disability Insurance: I Should Have Listened

I Should Have Listened
Ron Cohen, RHU, RR

There are many things people will argue about. Most like to be right and have the final word…Yet, sometimes you might wish, you had been wrong.
When it comes to explaining the urgency about protecting one’s income in the event of a disability, several scenarios come to mind. You can imagine, after almost 40 years, I have seen and experienced quite a few. Truth be told, these experiences have taught me there is an urgent message here and it needs to be conveyed to the public.
Fifty percent of all business foreclosures are a direct result of a disability.
Many years ago, an accountant referred a business owner to me.
After almost one year of going back and forth with each other, this individual purchased a disability insurance policy. Six months later, I received a call from him. Keep in mind, this individual was about 6 feet 4 inches tall and visually one would never imagine anything could bring him to his knees. He said, “Ron, you did a great job convincing me to purchase the disability policy, but you made one mistake!” I had no idea where he was going, or what he was talking about. Then he said, “I was just diagnosed with MS and I suppose the mistake you made, was not selling me more!” Since then, I show everyone the maximum benefit they qualify for. By the way, he was 32 years old!
Heart attacks, aids, spinal injuries, strokes, cancer, polio returning, car accidents, on and on….even a loss of a thumb and that was the end of a dentist and a surgeon.
There is an irony to life and it continues to be, “Bad things happen to good people.” No one knows the future, but I can predict what will happen when a disability strikes….change. Currently, I am dealing with a disabled dentist, age 49. Rheumatoid Arthritis….he’s done! Ironically, he purchased the practice from a disabled dentist. Now, his partner, who is a client of mine as well, applied for additional coverage (seeing what can happen) and we noticed a change in his personal health. He is 33. “I should have listened to you when you told me to buy the maximum benefit 2 years ago!” Well, I had the foresight to put the Future Purchase Rider on his original policy and surprised him with that after he disclosed his current medical problems. Age has no bearing on urgency.
Countless times I have received a phone call from individuals that I have been working with and trying to relate the urgency to them but hesitation, for some unknown reason results in the same scenario. “I would like to go ahead and purchase the disability insurance now!” They say. Something usually happened and normally, these individuals get rejected, rated or find exclusions on policies that are issued. After the fact and now they see the urgency…but there is nothing I can do.
All or nothing attitudes: Many individuals want the maximum benefit they qualify for and look at the current cost and say it’s too expensive!
Truth be told, if you look at the cost realistically, you will find that all the premiums you pay for the policy to age 65, will not total the amount of benefits you would receive for a one year claim! Protecting your income demands understanding and acceptance. I know all too well what can happen. No one is invincible! If your argument is the cost, then buy less and add the Future Purchase Option Rider. Just in case you do find yourself among those statistics….as we age, our health does not improve. If you are thinking that disability insurance is for the old, I can tell you from experience, most of the long term claims come from the younger professionals. Imagine that! There is urgency here and my job is simply this…..to let you know what you can do about it. The rest, well, is up to you. “One thing is certain…..change. It is the preparation that makes all the difference.” I try to lessen the “I should have listened to you” phone calls and become your advocate.