Disability Insurance Tips for Financial Advisors and Planners

As a financial advisor, you understand the importance of protecting financial assets and planning for the future. Yet, one of the most critical risks you may be overlooking for yourself is the possibility of a disability disrupting your income.

Financial advisors often work independently or as part of small firms, which means your earning potential relies heavily on your ability to work. If an illness or injury leaves you unable to continue your profession, your income—and, in many cases, your business—could be at risk.

At Disability Insurance Law Group, our attorneys know disability insurance is essential for ensuring your financial stability and ability to continue serving your clients.

Purchasing disability insurance is not just about protecting yourself—it’s about ensuring the longevity of your business. By securing coverage, you’re safeguarding your practice, ensuring your clients are continuously supported, and protecting the foundation of your career.

Here, we discuss actionable tips to point you in the right direction.

Actionable Tips for Financial Advisors Securing Disability Insurance

As someone who regularly advises others on risk management and protecting assets, you already understand the necessity of financial safeguards. Applying that same care to your income and future stability is not just prudent—it’s essential for long-term success.

Start by evaluating any existing disability insurance you may have. Look at what your employer offers or what personal policies you’ve already taken out. Ensure the coverage is adequate based on your income level and business needs.

Next:

• Opt for Own-Occupation Disability Insurance

As a financial advisor, your expertise is specific. Choose a policy with “own-occupation” coverage, meaning you’ll receive benefits if you cannot work in your profession, even if you can perform other types of work. This type of coverage is critical for professionals who may lose the ability to perform their specific duties.

• Consider Supplemental Disability Insurance

If your employer’s plan doesn’t cover at least 60-70% of your income, consider purchasing supplemental disability insurance. This helps fill the gap and ensures you can maintain your lifestyle in case of long-term disability.

• Look for Policies that Include Partial or Residual Benefits

Some disabilities may allow you to work part-time but not at your total capacity. Ensure your policy includes partial or residual benefits, so you can receive a portion of your benefits even if you’re working reduced hours.

• Work with a Specialist

Since insurance needs can vary, consult with a disability insurance specialist who understands the unique requirements of financial advisors. They can help customize a plan that fits your income level, lifestyle, and business obligations.

• Review and Adjust Regularly

As you advise your clients to review and update their financial plans regularly, do the same with your disability insurance. As your income grows, ensure your coverage matches your earning power and economic responsibilities.

Financial advisors are experts in managing risk for their clients, but managing the risks to your financial security is just as important. Disability insurance is vital to your income, business, and long-term success. By taking proactive steps to secure comprehensive coverage, you’ll protect your career and the clients who depend on your expertise.

Disability insurance is more than a safety net—it’s fundamental to ensuring your career and practice can thrive in unexpected challenges. Don’t overlook the need to protect your greatest asset: yourself.

Contact Our Attorney for a Free Consultation Today

No matter where you live in the U.S., if you have a disability claim and are facing resistance from your insurance carrier, call (954)-989-9000 or contact us online to schedule a free and confidential case assessment. We can use our over 50 years of combined experience to help effectively communicate the need for your specific benefits.

Related Links:

• Navigating Disability Insurance: A Guide for High-Net-Worth Individuals
• Individuals with Disabilities: Five Tips for Crafting Your Financial Plan
• Residual Disability Benefits in Private Disability Policies: What to Know About It
• Top Ten Crucial Considerations for Doctors When Purchasing Individual Disability Insurance