Megan and Ryan Collins are fictional characters created from stories we have heard from clients over the many years in the insurance business.  This is one of those stories:

Dr. Ryan Collins completed his general surgery residency in July of 2007 and began work as a surgeon in September, 2007. His new employer did not offer long term disability as a benefit so he knew he would have to purchase a policy himself.  With the income he was now receiving, it wouldn’t be a problem.  However, he was in no hurry, as he had purchased a policy while in his residency that offered a monthly benefit of $3,500.  “That should suffice for awhile,” he thought, “and besides, I’m not going to do anything that would put me at risk of becoming disabled.  His policy did have an option to purchase additional coverage without proof of medical insurability but he wasn’t eligible to exercise that option until the following April.

Megan was in their beautiful new home, bathing Jennie, their newborn, when the phone call came.  Michael had been in a car accident.  He was going to be okay, the nurse told him.  He suffered lacerations in both arms, but it appeared he would be alright.  The nurse didn’t feel it was appropriate to tell Megan over the phone about the severe nerve damage Ryan sustained in his right hand.

Ryan hadn’t planned for being out of work for 14 months while his hand “healed.”  The loss of income depleted any savings they had.  Due to permanent nerve damage, performing surgery in the future would be out of the question.  The good news was that the disability policy he did have ($3,500/month) did have an own-occupation definition of disability, which meant that his new job in family practice would not prohibit him from receiving benefits.

Granted, his new income of $10,000/month, coupled with his $3,500/monthly disability benefit was still a fairly good living.  However, it was significantly less than the $30,000 a month he was guaranteed as a surgeon. With bonuses and partnership shares in a year, he was looking forward to a monthly income of at least $40,000 a year from now. Between the mortgage on the new house and student loans, he and Megan would have to tighten their belts. Perhaps a smaller house in a different neighborhood would suit them better. If he had to, he thought, bankruptcy could definitely be an option.

Don’t let their story become yours.

Disability insurance is a must for professionals.  If your employer doesn’t offer it, protect yourself with an individual policy.  In many cases, even if you have employer-sponsored coverage, make sure your coverage is maximized with a supplemental individual policy.

Do you have a similar story you would like to share? Send it to stories@lifeinsure.com so we can share it with our readers.  Anonymity is guaranteed, as your stories will be told through the eyes of Ryan and Megan.