Disability Insurance
Income replacement if illness or injury prevents you from working.
What is Disability Insurance?
Replaces roughly 60-70% of income. The critical distinction is 'own occupation' coverage - which pays if you cannot do your specific job - versus 'any occupation', which pays only if you cannot work at all. For most working-age clients, disability risk exceeds mortality risk.
Disability Insurance: a worked example
A surgeon with a hand injury is protected only under an own-occupation policy.
More terms in Planning, Insurance & Estate
Emergency Fund
Liquid reserves covering several months of essential expenses.
Net Worth
Total assets minus total liabilities.
Term Life Insurance
Pure death benefit for a fixed period, no cash value.
Whole Life Insurance
Permanent coverage with a guaranteed cash value component.
Long-Term Care Insurance
Covers extended custodial care that health insurance and Medicare do not.
Will vs. Revocable Trust
Directs assets through probate versus holding them outside probate.
Beneficiary Designation
Account-level instructions that override the will.
Probate
The court process validating a will and distributing an estate.