One Cardiologist's Story

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Rebecca, a 35-year-old cardiologist with a thriving practice, injured her lower back one day while helping a friend move. As a result of the pain caused by this injury, she was unable to perform her duties as a cardiologist and as a 50% business partner of her practice. Fortunately, Rebecca protected her career and her business with disability insurance.

Rebecca protected her personal income with an individual DI policy, which paid her $14,220 a month in total disability benefits once she satisfied her elimination period. Her policy’s Cost of Living Adjustment (COLA) rider will increase her benefits over time to help keep pace with inflation, growing her benefit annually at a 3% compounded rate through the life of her benefit period.

Additionally, Rebecca protected her business with a Business Overhead Expense (BOE) disability insurance policy and a Disability Buy-Out (DBO) insurance policy. As a business partner, she was responsible for 50% of all of the practice’s overhead expenses (in excess of $100,000 a month). Her BOE policy reimbursed her $50,000 each month so she could continue to pay her share of those expenses, enabling her to keep her business out of debt even though she was unable to work.

After being on claim for nearly a year with no physical recovery in sight, Rebecca’s business partner voiced concerns about the future expenses and operations of the business without her help. Fortunately, after the 360-day elimination period was satisfied, the DBO policy provided $560,000 to her business partner to buy out Rebecca’s share of the practice.

(adapted from The Guardian Life Insurance Company of America’s "Keeping income strong")

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