Disability Insurance for Financial Professionals: What to Know

How would you support your loved ones if you couldn’t work?

As someone who helps others plan for long-term financial stability, you already know the importance of planning for life’s unknowns. And while insurance is likely part of the plans you construct for your clients, have you taken action to help ensure your own financial future is protected?

While you may not rely on the same physical workplace demands as some other professions, your income could still be at risk if an injury or illness prevented you from continuing work as you know it. Learn why disability insurance is a critical component to helping protect your future earning potential.

What is disability insurance?

Like other types of insurance, disability insurance helps protect your financial future against unexpected life events. Unlike life insurance which protects strictly a loss of life, disability insurance can help to protect your income while you’re living—specifically if you have an illness or injury that prevents you from continuing in your current job.

The benefit provides a payment that you can use to supplement your income. You can use it any way you choose, such as to cover living expenses like your mortgage or rent, groceries, or utilities, or for other expenses like childcare to help as you recover.

Why is disability insurance important?

Many of us have [link to new life insurance article: life insurance] to help protect our families if we pass away. But what about a situation where an illness or injury leaves you unable to work and earn an income while you’re living? For example, what if you were to injure your back and couldn’t sit for a prolonged period, or required a hand surgery that prevented you from typing and writing?

Illness and disability can affect anyone, in any job, at any time. And while the malady itself is jarring, it could also put a strain on your finances due to lost income—not to mention unexpected medical costs.

Disability insurance can help:

• Manage your daily expenses by providing for living expenses, like mortgage payments or rent, groceries, utilities, and more
• Plan for the future by providing a safety net so you can still achieve financial goals like saving for retirement, paying for your children’s education, or making the downpayment on a new home
• You focus on recovery by lessening your financial stress so you can concentrate on getting better
• Help protect your savings by helping to replace your income so you can avoid draining your savings while you recover

By taking proactive steps now to plan in case of future unknowns, you can help protect your savings, health, and lifestyle.

What disabilities does disability insurance cover?

Both Short Term and Long Term Disability insurance cover a wide range of injuries, illnesses, and conditions that could prevent or limit your ability to work. Here are some of the most common disabilities that are typically covered by one or both types of coverage.

• Accidental injuries, such as sprains, strains, and fractures
• Illnesses and disorders, such as cancer, stroke, Alzheimer’s, and arthritis
• Childbirth and complications of pregnancy
• Mental and behavioral health conditions

Specific coverage will vary by plan. For a comprehensive list of conditions covered through FSI Plans, call DSI at (888) 279-8348 or email FSIPlan@gotodsi.com for more detailed plan information.

How does disability insurance work?

Every plan has its own tools and administrative rules, but here is a quick look at what you can often expect should you need to use your disability insurance:

1 – Choose your plan
As an FSI member, you have access to three plans: Group Long Term Disability Insurance (Group LTD), Individual Disability Insurance (IDI) [link to LTD vs IDI article], and Short Term Disability (STD). Choose the plan that best meets your needs and stage in life. Pending application and approval, you’ll have an active policy, in place and ready to support you should the need ever arise.

2 – Incident occurs
Whether on the job, at home, or while you’re living life, you experience an illness or disabling injury that prevents you from working, your coverage is there to help protect you.

3 – File a claim
To begin filing a claim for any of the three CoveredAdvisor Disability Plans, contact DSI at 888-279-8348 ( 7 a.m. – 4 p.m. MT), or email FSIPlan@gotodsi.com.

4 – Receive your benefits
Pending claim approval, after your waiting period you’ll receive a monthly benefit that aligns with your level of coverage. Use the benefit however you like, whether that’s for transportation to/from appointments, to pay monthly bills, or simply to close the gap in living expenses while you’re unable to work.

What’s the difference between short-term and long-term disability insurance?

While the primary difference between these two types of disability insurance relates to duration, there are some other variances:

CoveredAdvisor Insurance Plans

As a financial professional, it’s essential to remember that the cornerstone of financial planning lies in preparing for all possibilities, including the potential of loss of income due to disability.

FSI members, learn more about the exclusive CoveredAdvisor disability plans available to you.

Not an FSI member? Learn more about membership or join membership today!

Need help deciding? FSI’s advisors are available to explain how the different features work and help you through the decision-making process. Call 888-279-8348 (7 a.m. – 4 p.m. MT) or email us at FSIPlan@gotodsi.com for more detailed plan information.