“We’ve seen entertainers whose legs have been insured, an entertainer whose rear-end is insured, the smiles of famous people insured, the hands of great boxers insured, and more recently, a football player whose hair is insured… it’s the voices of singers, the taste buds of wine and tea connoisseurs.”
“If you put them all together and look at them carefully, you’ll see something in common: an entertainment attachment. The entertainment industry uses body part coverage as a promotional device and not as truly legitimate insurance.”
The major clue that this may not be “legitimate insurance” lies in the wording of the policy, which can be so restrictive that the chance of a payoff could be slim.
“One of my early intros to this type of coverage was an inquiry about insuring a boxer’s hands,” Petersen says, noting that this specific policy would have only paid out in the case of complete severance of both hands above the wrist.
But entertainers aren’t the only people who could be concerned with body part coverage. According to Petersen, it’s not uncommon for a skilled surgeon to seek coverage for his hands, which are directly related to their income and livelihood.
This is where disability insurance is important. Disability insurance covers your living expenses in the event you become disabled and cannot work. Short-term disability pays a percentage of your income if you are unable to work for three to six months. While a long-term disability policy pays a percentage of your income for two to five years.
