Beyond docs and dentists: DI is essential for young professionals

By Suzanne Carawan

Disability insurance is often overlooked by financial planners serving young professionals outside the medical and dental fields. While traditionally associated with high-risk professions, such as doctors and dentists, DI is equally critical for a broader spectrum of professionals, including engineers, law and MBA students, and others with advanced degrees. Providing coverage early in professionals’ careers is not just advisable but imperative, serving as a crucial component in their financial portfolios.

It is one that was never introduced to me until mid-career, when insurability is more difficult, and one that would have served me well coming out of my MBA and into the workforce. When I think back to all of the global travel I’ve done throughout my career, having children, working through different illnesses and accidents, I never knew that I could have had the safety net DI. I was only introduced to this recently while attending the International DI Society’s annual conference.

For professions like medicine and dentistry, where the physical demands of the job and the risk of injury are higher, DI has long been considered a staple in financial planning. However, other professions, such as engineering and business administration, come with their own risks that make DI equally essential.

Consider the case of engineers. These professionals often work in dynamic environments, whether it’s on construction sites, in laboratories or even in office settings where ergonomic issues can arise. The risk of injury, whether from a workplace accident or a repetitive strain injury, is significant. In such cases, DI provides a vital safety net, ensuring that engineers can maintain their financial stability even if they’re unable to work due to injury or illness.

Similarly, law and MBA students and professionals face unique risks that make DI indispensable. Pursuing an advanced degree often requires a significant investment of time and money. Many law and MBA students take out loans to finance their education, with the expectation that their increased earning potential after graduation will enable them to repay those loans. However, if an unforeseen disability were to derail their career plans, they could find themselves unable to meet their financial obligations. DI mitigates this risk, providing law and MBA students with peace of mind knowing that they’re protected against the unexpected.

Offer it early

Offering these professionals DI early in their careers is essential for several reasons. First, DI tends to be more affordable when purchased at a younger age, as premiums are based on factors such as age, health and occupation. By securing coverage early, professionals can lock in lower premiums, ensuring that they have adequate protection in place without breaking the bank.

Purchasing DI early allows professionals to take advantage of the underwriting process, which evaluates their health and medical history to determine their eligibility for coverage. While individuals in their 20s and 30s are generally healthier and less likely to have preexisting conditions, they’re more likely to be approved for coverage and to qualify for preferred rates. Waiting until later in life to purchase DI could result in higher premiums or even denial of coverage if health issues arise.

Additionally, having DI early in their careers provides professionals with financial security and peace of mind. Starting a career can be an exciting yet uncertain time, with many unknowns lying ahead. Knowing that they’re protected against the financial consequences of a disabling injury or illness allows professionals to focus on building their careers and pursuing their goals without worrying about what would happen if they were unable to work.

Incorporating DI into their financial portfolios early also sets a solid foundation for long-term financial planning. Just as individuals invest in retirement savings and other forms of insurance to protect their financial future, DI is a critical piece of the puzzle. It ensures that professionals have a safety net in place to protect their income and financial security, even in the face of unexpected challenges.

Most people don’t seek out DI, so it’s critical that the advisor bring up the topic and address it early and often. When an advisor said to me, “Your biggest asset is your brain,” everything clicked for me and I went through the grueling process to get coverage. Knowing that I could have done this 20 years ago with a lot less stress is one of those life lessons that I put in the “that would have been good to know” category.

I am incredibly grateful that I have never had an illness or accident that has kept me out of the workforce, but I also know that I left it all to chance. When you invest in yourself and work hard in school and in your career, eliminating risk should be part of your mindset. Not having DI in place left me exposed for far too long.

Make sure that you discuss DI as a critical component of financial planning for early-career professionals beyond the realms of medicine and dentistry. From engineers to law and MBA students (think about all those HENRYs out there) and beyond, individuals with advanced degrees face unique risks that make DI essential. Offering this insurance early in their careers provides professionals with peace of mind, financial security and a solid foundation for long-term financial planning.

Alerting your clients to the importance of DI and partnering with specialists who can get them coverage must be imperative.