Today I had a call from a local orthodontist who was looking for an individual disability insurance policy for him and his wife, a dentist, to cover their new mortgage. Because of the size of the loan (over $1mil), the mortgage company required that they show proof that they have an individual disability policy to cover both of their incomes to avoid defaulting on the loan.
Both the orthodontist and dentist carry a significant amount of student loans. Although they each have substantial incomes, the mortgage company still sees a potential risk and need the loan to be secured.
In addition to the disability insurance, they also needed proof of life insurance in order to secure the loan. Although student loans go away at death, they still remain in the event of a disability.
Because of the nature of their work, it was important that we found them own occupation policies that would cover them if they couldn’t work in their respective dental specialties.