132R Insurance | A Framework

Importance

Disability insurance is crucial for anyone who relies on their income, not just those in the medical field. Jonathan Mendosa highlights that while doctors often discuss it due to their extensive training and financial investment, the need extends to all professions. This type of insurance, also known as income protection, provides financial support if you're unable to work due to illness or injury, such as a surgeon who can no longer perform surgeries due to a hand injury 1.

Anybody who depends on their paycheck needs disability insurance full stop.

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Brad Barrett acknowledges his lack of knowledge on the subject, emphasizing the importance of understanding this often-overlooked insurance 2.

   

Policy Types

Disability insurance policies vary, covering both short-term and long-term needs. Short-term disability typically covers conditions lasting less than 90 days, like a severe flu, while long-term disability is for more serious conditions, such as cancer, that require extended recovery periods 2. Jonathan Mendosa explains that long-term policies can offer benefits for several years or even until retirement, depending on the policy 1.

You can get a long-term disability policy that will pay you all the way through retirement.

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It's essential to review your employer's benefits package to ensure you have adequate coverage, as not all companies offer long-term disability insurance 2.