Disability Insurance

What is Disability Insurance?

Disability insurance protects your most important asset — your ability to earn a living.

  • It replaces income in the event of an accident or sickness
  • It provides coverage through your working years or for a benefit period that you choose
  • It offers options including protecting you in your own occupation and residual coverage if you are unable to work full time

How We Help

  • We will design your plan with the features that are meaningful to you
  • We will add to your coverage as your income increases
  • We will be there to advise you at time of claim
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What is Disability Insurance?

Disability insurance replaces lost income in the event of an accident or illness. It is the most overlooked and misunderstood of the major forms of insurance. A loss of income even for just a few months, may not only close the doors on the business but deplete hard earned family savings.

What is the Definition of Total Disability?

The definition of total disability is critically important. The best definition should be specific to your occupation and should state that you are unable to do the material and substantial duties of your occupation.

Do I Need My Own Disability Policy if I Have a Policy through My Employer?

Yes you do! Group Disability insurance offered through an employer provides coverage in very extreme instances of accidents and illnesses. It is typically capped, does not protect you in your “own” occupation, and is offset by any other income received while you are disabled. Employer offered group disability coverage costs only dollars each pay period, and you get what you pay for which is very little. Finally, a group policy is gone when you leave the company.

Should a Small Business Owner get Disability Insurance?

Absolutely! Coverage for a small business owner is critical because if the owner cannot work, there is no income for the family and the business may fail. Personal disability and key person disability would both be useful to the small business owner.

What Is Disability Buy Out Insurance?

Small businesses rely on partners to pull their weight when running the business. If an illness or injury happens to one partner, that would place a burden on the working partner. This type of business disability insurance allows the buy-out of the business ownership and benefits both partners and families. Disability Buy-Out Insurance is one of the most overlooked and inexpensive types of disability insurance.

What is Key Person Disability Insurance?

Many businesses are successful because of the work and expertise of key employees. This type of disability insurance protects the business in the event a key employee becomes sick or unhealthy. These policies usually have a 1 to 2 year benefit period and are economically priced.

How Much Disability Insurance Should I get?

The quick answer is as much as your budget allows. Underwriting for disability insurance is based on three factors: occupation, income and health. This kind of insurance is very sensitive to occupation as hazardous occupations do more often result in becoming disabled and therefore are more difficult to insure. Since this coverage is based on income, tax returns are required to apply for coverage. The maximum initial monthly benefit available is $15,000/month and the amounts are based on reported income. Premiums are typically not deducted so that benefits may be received tax- free. There are numerous riders available and those should be discussed with a disability insurance specialist.

What Does Residual or Partial Disability Mean?

Residual or Partial disability covers a percentage of an income loss when you can only work part-time. Self-employed insureds should consider whether this benefit is advantageous. This rider and all riders should be discussed with a  disability insurance expert.

Should I Buy a Future Insurability Rider?

Young executives purchase disability insurance based on their current income. By adding this rider, they protect their future insurability and will not have to prove good health when they apply to increase their benefit. This rider is a very inexpensive way to solve a serious problem that could arise in the future.

What is the Difference Between Disability Insurance and Long Term Care Insurance?

These two types of insurance policies are often confused and dramatically different. Disability Insurance replaces lost income due to not being able to work. Long Term Care insurance pays for custodial care either at home, in an assisted living facility or in a nursing home. While both may overlap, if income is needed, only a disability policy will satisfy that need.