Doctors, lawyers, and other professionals of CPAs often pay attention to their family's life insurance requirements, but concerns about becoming disabled usually go unaddressed. Statistically, however, a professional is far more likely to suffer a severe disability that damages the ability to work rather than die prematurely. While some people have the financial resources to fund a disability on their own, most need disability income insurance to cover the risk. Good planning on the part of a CPA can result in peace of mind and financial security i.e. the perfect gift for one's family and other loved ones.

Disability insurance planning has changed dramatically over the last decade. Professionals and their financial advisors have demanded more flexible plans when structuring disability policies. The insurance industry has responded by offering myriad options. Now more than ever, CPAs can help clients protect their most valuable asset i.e. the ability to earn an income. This is one area where what applies to all professionals also applies to CPAs themselves and to their businesses.

Disability insurance can be purchased on the basis of an individual or group. Group insurance is usually provided by an employer or purchased individually through a sponsoring professional association. Although initially it is low in cost and a reasonable alternative for some professionals, such group policies do not provide the customized benefits which can be achieved through high quality individual policies.
One can cancel group policies by the sponsoring association or the insurance company, rates increase with age and premiums are subject to adjust based on the claims experience of the group. In addition, group and association contracts often contain more restrictive definitions of disability as well as less generous contract provisions when compared to well-structured individual policies. On the other hand, group policies are initially far less expensive than individual policies.

Most insurance companies will issue disability insurance coverage equal to approximately 60% of earned income. However, certain occupations are provided with special limits. These limits enable new professionals to purchase benefits in excess of what their current earnings would normally allow. The most common maximum monthly benefit available to professionals is $15,000. However, some companies that depend on an occupation, may allow a professional to purchase up to $20,000 in coverage combined with group long-term disability (LTD) insurance provided by the professional's employer.

The rates of premium are based on factors for instance, the insurer's age, gender, monthly benefit, optional riders, and the occupational classification that the insurance company assigns to each profession. As a general rule, the younger the policy owner gets the lower cost policy. If professions purchase a policy early in their career, can get low premium rates. Although women are better risks for life insurance, this does not hold for disability insurance. The premium rates for females are higher and their policies can cost 50% to 75% more than policies for men.

This arrangement typically requires that three or more policies be purchased by individuals employed at the same law firm, medical practice, or other professional firm. While this strategy enables females to save as much as 50% on the cost of their policies and the rates of males may actually increase. One must consider any potential savings against the overall makeup of the individuals to be insured. The occupational classification assigned to a profession or medical specialty by the insurance company will significantly impact premium rates, as well as the policy provisions made available to the insured. The classifications are generally based on the experience of insurer's claims. Professionals such as CPAs and attorneys generally qualify for the highest occupational classification and also pay the lowest premium. On the other hand, physicians qualify for a lower classification and therefore pay higher premiums.