Amazingly 1 in 3 GoFundMe accounts, the largest platform for crowd sourcing, is related to covering medical bills1. According to GoFundMe CEO Rob Solomon, who was quoted in December of 2018, stated that medical bills account for the largest contributions. Many of the stories on their platform are heart breaking, making it almost impossible not to want to break open your wallet and contribute.
However, it raises the question, is your financial strategy solid enough to avoid being the 1 in 3 accounts, left hoping the good will of strangers will come to your financial rescue should poor health, or an out of the blue diagnosis not go your way? Many accounts are set up by friends or family members, to protect the dignity of the recipient from having to set up the account themselves. Crowd Sourcing has quickly become the technological way of what used to be “passing the hat”.
When given the choice, most Lawyers want to avoid compounding what likely is already an emotional challenge, by then advertising what reveals poor preparation on the front end. To fortify a financial strategy in the accumulation years, one must first accept that a disruption, or even a total loss of income would be devastating to your financial health. A thoughtful way to help reduce this liability is by passing this risk onto an insurance company through a vehicle called “Disability Income Protection insurance”.
Disability Income Protection insurance is unique in that it will tailor to your specific occupation. A lawyer will seek out a different type of coverage than a dermatologist, a dentist, or a teacher will. For this reason, it is important to work with an independent professional, who specializes in working with lawyers, to help you evaluate which policy may be appropriate specifically for you and your profession. Are there advantages to looking into this type of financial vehicle early on in your career?
Absolutely, the younger you are, the more economical your premiums will be. What is unique about private disability coverage, is it is considered a “unilateral contract”. Meaning, once an offer is made by the insurance company, only you can make changes, this includes your premiums. With this type of insurance, they (the insurance company) cannot send you a letter lamenting a “tough year, so we need to increase your premiums”. Therefore, waiting on securing coverage to protect your income, to maybe avoid a premium, means you take the risk of having to turn to another source for financial assistance, like crowd sourcing.
The very foundation of a one’s financial strategy is first their ability to earn an income. And for Lawyers their ability to practice is the most precious asset. For that reason, Lawyers protect their dignity, and implement this financial instrument into their portfolio above all else first – an occupation-specific disability income protection policy.
1Source: NPR, Patients Are Turning To GoFundMe To Fill Health Insurance Gaps, December 2018. North Star Consultants, Inc., Insurance Products and Services | CRI Securities, LLC, Securities and Investments | Securian Financial Services, Inc., Variable Products and Securities. North Star Resource Group offers securities and investments through CRI Securities, LLC and Securian Financial Services, Inc. Members FINRA/SIPC. CRI Securities is affiliated with North Star Consultants, Inc. North Star Consultants Texas, Inc. and Securian Financial Services, Inc. Securian Financial Services Inc., operates under separate ownership from North Star Consultants, Inc. and North Star Consultants Texas, Inc. North Star Consultants Texas, Inc. doing business as North Star Consultants of Texas in the state of Texas.