Disability Insurance with Kelly McConnell
We are in a new month and now have only 5 months of new episodes to go in my final season. I can’t believe how quickly this is going. This month’s topic category is Risk Management. Risk Management is an area of financial planning that no one wants to talk about or think about, but it’s a necessary component. If you’re not prepared for what could be the worst-case scenario, then you’ll not only experience a personal shock like an accident or death, but you’ll also experience a series of unfortunate financial surprises. Today, I’ve got a previous guest and longtime Financial Gym client, Kelly, back on the show to talk about how disability insurance changed her life and the advice she gives to others on how, why, and when they should consider it.
What are we drinking?
Kelly – Black Coffee
Shannon – Black Cherry Schweppes
Podcast Notes
The Importance of Disability Insurance
Shannon really learned about the importance of disability insurance during an interview with Jen Fitzgerald from Policy Genius. Before the age of 67, more people are more likely to become disabled than to pass away. Planning for that possibility is important and where disability insurance comes into play.
Kelly shared her full story on her first Martinis and Your Money appearance but summarizes again the story of her disability. For most of her life, Kelly had health hiccups but always powered through. She got disability insurance through her doctoral program and continued to get sicker.
Kelly was diagnosed with Ehlers-Danlos syndrome (EDS) and became permanently disabled. Almost a third of her life is spent in the hospital, which she never imagined as she was going through medical school.
Disability insurance is income replacement insurance. It is one of the more expensive insurance responsibilities out there, but it is because payouts are more common. There are so many ways we can become disabled, and insurance can protect you.
The Benefits of Disability Insurance
Kelly is passionate about disability insurance because it has greatly improved her experience. There is already so much stress with being physically sick; having to worry about money is another layer of stress.
When Kelly was first unable to work, her private disability insurance allowed her to take care of things in her life. There is government disability, but it can take time to get approved. The system can be a pain to navigate, and some folks aren’t approved at all. Private insurance bridges the gap and gives you flexibility and time.
How much disability insurance costs depends on your income and the level of coverage you’re looking for. It can range from $150-$300 per month, but is well worth it if you ever use it. Private insurance allows you to insure the type of income, which is great for folks who invested time and money into a specialized education.
Kelly was able to have her student loan debt discharged because of her disability. While applying for that forgiveness, the private insurance payouts helped Kelly stay on top of her payments.
Final Thoughts
Disability insurance is income replacement insurance. It’s a way to protect yourself and your loved ones. Even a small policy is better than no coverage at all. Use an online calculator to determine what fits your budget.
Most people will experience some form of disability in their lifetime. There are different levels, which can happen to anyone in any profession. It is essential to plan. Disability insurance can help you sleep at night.
It’s much harder to get insurance once you’re already sick. While it can feel hard to fit another expense in your budget, it’s risk management and should be at least considered,
Kelly is thankful for her decision to have disability insurance because it has provided time, flexibility, and security while figuring out her illness. She’s always happy to connect with others and answer questions about the process.
Takeaway: My biggest takeaway is that while some risk management solutions like disability insurance can be tough on the monthly budget, it’s important to try to find room for it, especially if the risk of needing it could be high.
Random Three Questions
What are we doing to celebrate when we’re together next?
What do you do when you’re in the hospital to pass the time?
If you had a month with no health problems, what would you do?
Resources Mentioned:
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me at Shannon@fingyms.com or join the private Martinis and Your Money Facebook Page, and let me know what you want to hear.
As many of you know, other than running this podcast, I’m the founder and CEO of The Financial Gym, and we are celebrating 10 years of this journey. Now more than ever, I see the importance of the work we do every single day. Rising inflation, the return on student loan debt, high-interest rates on loans and mortgages, and volatile stock markets make it a time where, now more than ever, you need a best financial friend to help you make the best choices along the way.
At Financial Gym, you get paired with a Certified Financial Trainer, who we call your BFF. Our team has coached clients through every financial season, whether they were living paycheck to paycheck or headed into Financial Independence and Retirement. As a reminder, we work with individuals, couples, or business owners.
The exciting news of 2024 is that Financial Gym now has a sister company, FG Advisory Services, available for people looking for more traditional financial advisory services like asset management delivered by a team that looks and behaves nothing like a traditional financial advisory services company. We literally have a solution for you, no matter where you’re starting from. So what are you waiting for? Head over to or send friends to financialgym.com to get started today. Our warm-up calls are free of cost and judgment, so you have nothing to lose.