Disability Insurance Saves a Family—Twice

Disability Insurance Saves a Family—Twice

Valerie King was not a believer. When she transitioned from her medical residency to practicing as an emergency room physician, she didn’t think she needed disability insurance. “I could never envision a life without working,” she says. Her insurance professional convinced the young doctor otherwise.

It was wise advice. Although Valerie never thought she would need it, a condition called ulcerative colitis made the decision for her. The disease and a series of surgeries made it impossible for her to carry out her duties, and she found herself unable to practice the profession she loved. It was her disability insurance coverage that allowed her to survive financially and care for her three young daughters who she was raising as a single mother.

Life also had a second chapter for Valerie. She met and married Tim, also a divorced parent. They looked forward to raising their blended family together and sought the advice of insurance professional Larry Ricke, CLU, ChFC. In addition to the life insurance he had recommended, Larry made sure Tim understood the importance of disability insurance. Tim didn’t believe he’d ever need it, but with Valerie’s urging he finally agreed to get coverage.

“No one thinks lightening will strike twice,” says Larry, “but in this case it did.” Tim, who had a high-profile position in the printing business, came close to dying from an undiagnosed aneurism and valve issue with his heart. A risky operation saved his life but ultimately left him unable to return to work. Again, disability insurance made it possible for the family to go on financially.

“Most people think, ‘It will never happen to me,’” says Valerie. “But the truth is it can—and does. Everything else goes away if you don’t have disability insurance coverage and you can’t work.”

Disability Insurance Saves a Family—Twice :30

Disability Insurance Saves a Family—Twice :30

Most think, “It will never happen to me.” But disabilities do strike, and for Valerie King and her, husband Tim, it struck twice. Because both had disability insurance, they’ve been able to live a life with financial dignity and create a good life for their family.

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Careful Planning Saved a Family and a Business

Careful Planning Saved a Family and a Business

The change from being a pastor to opening up an IT business is not for the fainthearted. But Tim Meredith knew this career leap would benefit his family by allowing them to stay in the area they loved, while also letting him to try something new.

While it may have been an adventure, neither Tim nor his insurance professional Joe Grabar, CLU, CFP, took the change lightly. Since Tim no longer had benefits through the church, they put in place health insurance, increased his personal disability insurance coverage, and added long-term care insurance. Importantly, Tim also got a disability insurance overhead policy for the business.

Just six months later, on a Sunday afternoon, Tim found himself doubled over in pain. What he thought was a kidney stone was, in fact, an iliac aneurism, which caused him to suffer two strokes. Doctors operated, but said he only had a 5 percent chance of survival. Tim beat those odds, reviving from a coma after three weeks and eventually moving on to rehab.

While Tim has been away from his fledgling business, it continues on in his absence because of the planning he and Joe had done. The disability insurance overhead policy helps the business meet payroll and pay vendors, while assuring customers that the business will go on. Tim’s personal disability policy replaces a portion of his salary, which helps pay for the family’s everyday expenses, such as the mortgage and groceries. The long-term care policy is there to pick up where health insurance leaves off, when it comes to rehab and other care expenses.

Tim is doing better each day, and plans on going back to work at his company in the near future. “I’m so thankful I had these policies in place,” says Tim. “Without this planning, I’m not sure where my family would be financially, or if my business would even still be alive today.”

Survival Instincts, Smart Planning Save the Day

Survival Instincts, Smart Planning Save the Day

New Year’s Eve for the Reids is a family affair. So when Bill Reid didn’t show up at his sister Michelle’s home, everyone was worried. Around 9 p.m., a call to an area hospital confirmed the family’s fears. Bill had been in a horrific car accident. Another motorist hit Bill’s car head on, driving it through a brick wall and trapping him in his car for 90 minutes.

Bill, then 32, sustained multiple bone fractures, lacerations to his liver and colon, and a brain injury that put him in a coma for five weeks. He underwent 13 surgeries and spent seven months in the hospital and rehab center. It took almost two years for him to walk unassisted.

The brain trauma, however, left Bill with chronic, short-term memory loss, which made it impossible for him to return to work. Fortunately, he had planned ahead with the help of his brother-in-law, James Hasley, CFP, CLU, ChFC, an insurance professional. James had sold Bill an individual disability insurance policy when Bill was just 26, and later helped him add more coverage as his earnings increased. When Bill changed to a job that offered an employer-paid disability insurance benefit, he kept his individual coverage for the added protection.

Because of Bill’s wise decision, his income is roughly the same as it was before the accident and will continue until age 65, allowing him to stay in his home and lead an active life.

Before the accident, Bill had also purchased two life insurance policies. Because they included disability waiver of premium riders, the insurance company now pays all of Bill’s premiums. The whole life policies are accumulating cash values that will provide Bill with financial security later in life.

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