If something were to prevent you from performing your job, you might assume that national disability insurance would cover you. However, for professionals in specialized fields like law, this often isn't the case. The government's definition of disability is narrow, typically requiring complete inability to work in any capacity. Additionally, even if you qualify for benefits, they are unlikely to sustain the standard of living you've achieved through your career. 

So, what's the solution if you can no longer practice law but could take on a different role? The answer lies in Own-occupation Long Term Disability (OWN LTD) insurance, a critical safeguard for lawyers and other professionals aiming to secure their financial future. 

What is OWN LTD Insurance? 

OWN LTD is designed to protect professionals who may become unable to perform the unique duties of their specific occupations due to disability. This type of insurance is vital for those in specialized fields such as law, medicine, or other professional careers, where skills are not easily transferable. 

OWN LTD Insurance steps in where standard disability insurance does not, covering you if you can't perform your specific job functions, even if you could work in another capacity. This ensures that if you can no longer practice in your area of expertise, you'll still receive a significant portion of your income. It's an essential safeguard that maintains your financial stability and supports your lifestyle, without the pressure to switch to a less specialized, potentially lower-paying job. 

Why OWN LTD Insurance is Important 

OWN LTD Insurance plays a crucial role in a comprehensive financial plan, especially for those in specialized fields: 

• Specialized protection. OWN LTD Insurance is tailored to cover disabilities that prevent you from performing the specific duties of your profession. This is vital for careers where specialized training or skills are not easily transferable to other job types. 

• Income security. It ensures a continued income stream if you are unable to practice in your chosen field, helping you maintain your standard of living without compromise. This is particularly important for professionals who have invested heavily in their career development. 

• Family financial stability. OWN LTD Insurance helps safeguard your family’s financial future by ensuring they continue to receive financial support even if you are unable to practice your profession, covering essential household expenses and educational costs for your children. 

• Lifestyle maintenance. OWN LTD Insurance helps preserve the lifestyle you and your family are accustomed to, covering everyday expenses, debts, and savings plans without disruption. 

• Peace of mind: Knowing you're protected in the event you cannot perform your professional duties reduces stress and allows you to focus more on recovery and less on financial worries. 

• OWN LTD Insurance provides a safety net that is uniquely designed for the uncertainties faced by professionals whose careers demand highly specialized skills. It not only protects your financial assets but also provides a buffer against the unexpected, ensuring your career investments are secure.  

Critical Considerations for Your Coverage 

When selecting OWN LTD Disability Insurance, it’s important to tailor your coverage to your specific needs: 

• Definition of disability. Ensure the policy's definition aligns closely with the demands of your profession. The best policies provide benefits if you are unable to perform the duties of your specific job, even if you could work in another capacity. 

• Benefit period. Decide how long you need the benefits to last. While some policies offer coverage until retirement age, others may have a limited number of years. Choose a duration that safeguards your financial future. 

• Elimination period. Consider the waiting period before benefits begin. Shorter elimination periods mean quicker payouts but often result in higher premiums. Find a balance that suits your financial situation and risk tolerance. 

• Coverage amount. Ensure the benefit amount adequately reflects your current income, typically aiming to cover 60-80% of your pre-disability earnings. This helps maintain your standard of living without significant compromises. 

Choosing the right parameters for your OWN LTD Insurance is vital for maximizing its effectiveness and ensuring your professional and personal stability. 

Securing Your Professional Future with OWN Insurance 

Investing in OWN LTD Disability Insurance is a strategic decision to protect not only your career but also your lifestyle and family’s well-being. This type of insurance provides peace of mind, knowing you can handle life's uncertainties without financial compromise.  

Speaking to a qualified insurance professional can help you better understand the role OWN LTD can play in your insurance portfolio. While we do not sell insurance at Hark Financial Planning, we specialize in creating personalized financial plans that can help assess the benefits of getting coverage safeguard. Contact us today to discuss how OWN LTD Insurance can form a cornerstone of your financial security.