The insurance industry has some scary statistics about people being disabled during their working careers. There is merit to disability insurance, which many companies offer as an employee paid benefit. Unfortunately, individual disability policies for the self-employed are usually quite expensive and end up in the budgeting room’s cross-shredder.
For doctors, dentists, and other people whose small motor control in their hands or the use of their eyes (e.g. a jeweler) is a key to their business, disability insurance is a must. A dentist acquaintance of mine was in an automobile accident that severely damaged the muscles in both arms. Although he fully recovered, he was never able to regain the fine motor controls in his hands that would have allowed him to continuing being a dentist. He literally had to start his working life over. Fortunately, he had disability insurance.
Scott Anderson, CPA, CFP®, EA is the CFO and Vice President of Tax Strategies for GW Financial, Inc. He earned his MBA from Stanford University. Scott has spent over 35 years in corporate accounting and finance, including experience with several entrepreneurial opportunities in venture capital startups and corporate turnaround situations. He has served as Chief Financial Officer for two emerging public companies and has his own active practice in tax, financial, and investment planning for individuals and small business owners.