This past month one of our clients reached out to us after becoming partner in a high-volume orthopedic practice. A year ago, his annual income as an associate was $350,000 and he had maxed out his individual disability insurance policy to $15,000/mo. He showed us his new contract which substantiated an increase in his income to $600,000/year. He indicated to us that the $15,000/mo benefit would no longer be adequate; and asked us if it would be possible to double his monthly disability benefit. This is how we did it:
1. Established an additional $10,000 in monthly benefit with a different disability insurance carrier.
2. Went to Lloyd’s of London for the additional $5,000/mo since $25,000/mo in disability benefit is the maximum that the individual carriers will offer.
With these 3 policies, our client now has 60% of his own occupation income protected. If he would like, he could establish an additional $2,500/mo policy with Lloyd’s to achieve 65% income replacement.
If you recently experienced a substantial increase in annual income and are looking to maximize your income replacement, contact us to receive a detailed quote and prudent recommendation.