feature Financial Adjustments Disability insurance T Paul Philip, CFP, CLU here have been significant changes to disability plans for chiropractors in the past few years. Let’s start the new year with an update of these, to help you keep your financial house in order. But first, let’s take a moment to discuss why you should consider disability insur-ance at all. If you become disabled, whether by accident or illness, the reason for having disability insurance is obvious. If you lose your income, it will cause financial hard-ship on top of emotional hardship. If you do not have financial assets that are suf-ficient to live on for the rest of your life, you need disability insurance. Think about the following: We all insure our homes and vehicles. But what about insurance for our incomes? Your ability to earn an income is by far your most important asset. Throughout your career span as a chiropractor, you have the fortunate opportu-nity to earn millions of dollars in income (if you think about it, $80K per year income for 35 earning years – adjusted according to a three per cent inflation rate over the years – amounts to over $5 million) providing you and your family the financial life and in-dependence you deserve. However, this is all contingent upon your health and ability to continue to go to work for those 35 years. The fact is, the odds of incurring a disability are 100 per cent or zero. It either happens or it doesn’t; but if it does, the result can be financially devastating. Common sense would dictate that you insure your largest poten-tial financial loss, yet it is amazing how many chiropractors overlook proper disability coverage at the risk of losing millions of dollars should an unexpected accident or illness occur. Without a proper disability plan to step in and replace income, even a short-term disability can completely throw a chiropractor’s financial life off track. Paul Philip, CFP, CLU, and Nancy Philip, CFP, CLU, are a dynamic sib-ling team who have been advising hundreds of chiropractors across Canada since 1992. Their firm, Fi-nancial Wealth Builders, is located in Toronto, Ontario. To learn more about building your wealth, visit their website at www.fwb-inc.com or contact Paul or Nancy at 416-497-0008. DISABILITY CLAIMS AND TRENDS FOR CHIROPRACTORS Over the past few years, most insurers have downgraded the type of disability plans being offered to chiropractors. Features have been removed and premiums have signifi-cantly increased. This is due to increasing disability claims being made by the chiroprac-tic profession. In addition, with advances in health care, the trend of increased disability claims and duration is expected to continue. Illnesses that used to be fatal (such as can-cer, heart attack, etc.) are survivable but resulting in longer-term disabilities. CURRENT BUYING OPPORTUNITY The good news is that if you haven’t set up proper disability coverage yet, there are still a couple of insurers left that have not yet downgraded their plans or increased their premi-ums for chiropractors. Currently, top-notch disability plans can be locked in with these lower premiums and superior features. However, these remaining carriers could also downgrade their plans and increase premiums at any time to follow suit with the rest of the industry. Securing an individually owned disability contract now, before any further changes occur, guarantees you are protected by the very best plan available. TYPE OF DISABILITY PLAN TO CONSIDER A professional, individually owned plan gives you the most control and security. You own and control the plan. The policy cannot be cancelled or modified, and premiums cannot be increased. It can be customized to suit your individual needs, and strategies exist to keep costs affordable. Nancy Philip, CFP, CLU 34 • CANADiAN CHiROPRACTOR | FEBRUARY 2011 www.canadianchiropractor.ca
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