Other important considerations
It is essential to know whether your policy is non-cancel-able or guaranteed renewable. The difference between these two terms is very important. If a policy is non-cancel-able, you will pay a fixed premium throughout the contract term. Your premium will not go up for the term of the contract, nor can it be cancelled. If it is guaranteed renewable, this also means it cannot be cancelled, but your premiums can increase.
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It is also important to determine the financial stability of the insurance company underwriting your policies. When considering the purchase of a policy or reviewing a current policy, check the financial soundness of your insurer. Work with your financial advisor to find high-quality, appropriate coverage with a reputable and respected insurer. The worst-case scenario is that your insurer goes out of business because their premiums were too low. In the disability insurance world, you generally get what you pay for.
The general information presented here may not be suitable for everyone and should not be construed as personalized legal or tax advice.
Content provided by Daktori Financial Fellowship:
Kevin B. Perlberg, CFP® professional, has been recognized numerous times by Medical Economics Magazine as one of “The Best Financial Advisors for Doctors.”
Susan Brousseau, CLU, ChFC, CFP®, delivers comprehensive financial planning with an emphasis on asset protection and is a nationally recognized speaker on the subject.