Which of the following assets that you own has the greatest value?
A. Your home
B. Your car
C. Your ability to work
D. Your $500,000 401k account
Unless you are retired or very near retirement, "C" is the correct answer. If you are 40 years old and making $100,000 per year, the present value of your future earnings at 7.0%, assuming you never get a raise, is $1,165,000.
When you multiply the value of your earnings potential times the high chance of disability, you understand the need for disability insurance. Woodard Insurance, LLP, helps professionals design the best individual disability programs available.
The finest individual disability contracts are called "non-can" policies. They are non-cancellable, have guaranteed rates, and define disability as the inability to perform your regular occupation, even if you voluntarily learn a new occupation.
Due to high claims and large losses, the "non-can" disability market began shrinking in 1992 and continued shrinking for over 10 years, particularly for medical professionals and dentists. However, in the summer of 2004, insurers starting increasing limits and improving coverage quality for doctors and dentists. That trend has continued into 2008 and now most medical professionals can purchase true "own occupation," specialty-specific policies at affordable prices. We specialize in locating the best disability contracts for our clients, securing small-group and association discounts wherever possible, and negotiating the best underwriting offers possible for persons with health problems.
Often, employers want to provide their top executives with non-cancellable disability insurance. For these employers, Woodard Insurance sets up "Sec. 105 Wage Continuation Plans," which are executive disability plans funded with "non-can" disability policies.