The Financial Impact of Disability

What is your most valuable financial asset and are you protecting it? It’s not your House or Car which you insure? And it’s probably not your investments or any other asset you own. Your most important financial asset is YOU and your ability to earn income. Think of yourself as the goose that lays the golden eggs. The golden eggs are the houses, cars, and other things you accumulate. You protect those eggs and you insure them. However, without the goose there would be no golden eggs. Therefore, the most important item to insure is the goose that produces those eggs. That’s what disability insurance does, it insures your most important asset, YOU!

What is the financial value of you and your ability to earn an income? Most people are surprised to learn how much income they stand to earn over their working years. The following chart illustrates the cumulative income potential over a physician’s career at varying ages.

Earning Age 30-65
35 Years
Age 30-65
30 Years
Age 40-65
25 Years
Age 40-65
20 Years
Age 50-65
15 Years
Age 55-65
10 Years
Age 60-65
5 Years
$150,000 $5,525,000 $4,500,000 $3,725,000 $3,000,000 $2,250,000 $1,500,000 $750,000
$200,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000
$250,000 $8,750,000 $7,500,000 $6,250,000 $5,000,000 $3,750,000 $2,500,000 $1,250,000
$300,000 $10,500,000 $9,000,000 $7,500,000 $6,000,000 $4,500,000 $3,000,000 $1,500,000
$350,000 $12,250,000 $10,500,000 $8,750,000 $7,000,000 $5,250,000 $3,500,000 $1,750,000
$400,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000
$450,000 $15,750,000 $13,500,000 $11,250,000 $9,000,000 $6,750,000 $4,500,000 $2,250,000
$500,000 $17,500,000 $15,000,000 $12,500,000 $10,000,000 $7,500,000 $5,000,000 $2,500,000
$550,000 $19,250,000 $16,500,000 $13,750,000 $11,000,000 $8,250,000 $5,500,000 $2,750,000
$600,000 $21,000,000 $18,000,000 $15,000,000 $12,000,000 $9,000,000 $6,000,000 $3,000,000
$650,000 $22,750,000 $19,500,000 $16,250,000 $13,000,000 $9,750,000 $6,500,000 $3,250,000
$700,000 $24,500,000 $21,000,000 $17,500,000 $14,000,000 $10,500,000 $7,000,000 $3,500,000
$750,000 $26,250,000 $22,500,000 $18,750,000 $15,000,000 $11,250,000 $7,500,000 $3,750,000
$800,000 $28,000,000 $24,000,000 $20,000,000 $16,000,000 $12,000,000 $8,000,000 $4,000,000

– A physician Earning $300,000 annually who becomes permanently disabled at age 40 could lose $7,500,000 of earned income through retirement age 65.

– A physician Earning $500,000 annually who becomes permanently disabled at age 45 could lose $10,000,000 of earned income through retirement age 65.