easy · Certified Financial Planner Risk Management
Dr. Okada, a 44-year-old orthopedic surgeon with an annual income of $650,000, is evaluating disability insurance options. She is concerned that a hand injury might prevent her from performing surgery, even if she remains capable of working in a general clinical or teaching capacity. A local agent suggests a policy with an any-occupation definition because it is significantly less expensive.
What should the planner recommend to Dr. Okada?
- Purchase a policy with an own-occupation definition of disability.
- Self-insure the risk using her $24,500 annual elective deferrals.
- Accept the any-occupation policy to minimize fixed overhead costs.
- Delay the purchase until she can reach the 72,000 Section 415(c) limit.
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