“We do [offer specific body part coverage] and we’re happy to do that. But let’s break it down and look at it a little more carefully: If that surgeon got a bump on the head and his mind wasn’t thinking clearly, it would affect his work. Let’s take the same situation and make him a cancer victim, and it would affect his work,” Petersen says. “So when we approach body part coverage, we really try to spin it back to a full comprehensive disability insurance approach for this type of situation. The wording is more refined [than a publicity-driven policy], and can include arthritic conditions or loss of use. For instance, if he has mobility of his hands, but doesn’t have dexterity.”
And to the largest percentage of people who don’t happen to be entertainers or skilled surgeons and strictly want to protect themselves against the possible loss of a limb or body part, disability insurance is still important.
“If you just do a quick, simple calculation by multiplying income and the years before retirement age, you will come up with a very large number. That’s the capitalized value of an individual at work,” Petersen says. “This number doesn’t take inflation or income increase into consideration, but it is what a person would give up if they become disabled and can no longer work.”
Petersen also noted that while income does decrease when a disability affects employment, the expenses can also increase dramatically. Disability insurance can protect your lifestyle, as well as ensure continued support for your family.
