My disability coverage is going to have an exclusion. Why should I take it?

Chip loved his job. He started his business from scratch and had built it into a successful company with 10 employees. He loved to talk with people about what he did, and people loved doing business with him.

Chip’s financial advisor recommended disability income protection coverage as part of a financial planning meeting. When they applied, the carrier placed an exclusion waiver on the spine because Chip saw his chiropractor regularly for maintenance. Chip thought this was silly and did not want to take the policy. His advisor pointed out that the exclusion waived coverage on degenerative issues but would cover trauma to the spine. Reluctantly, Chip accepted the policy.

Eight years later, Chip was driving on the interstate and was rear-ended by a tractor-trailer driven by an independent with very little insurance. It crushed parts of his spine, and after several surgeries, Chip could walk but had unbearable pain. The medicines could only slightly alleviate his pain, and the side effects left him unable to concentrate due to headaches, and his speech was slurred to the point you could barely understand him.

Because his policy covered trauma to his spine, he received full benefits. Chip will never be able to work again, but these benefits allow him to still live with dignity. He is putting his youngest child through college; he paid for his older daughter’s wedding; and his wife didn’t have to go to work and is able to stay home and take care of him.

His life is far different than what he expected, but he is very appreciative that his advisor convinced him to buy this coverage even with an exclusion on it.

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