Disability Insurance

Disability Insurance provides monthly benefits if the insured is unable to work due to an accident, sickness, or Illness and consequently, suffers a loss of earned income. This type of coverage is extremely crucial for Self-Employed individuals and people who do not have disability insurance through their employer. Disability Insurance is very important protection, because the potential for disability before the age of 65 is higher than the probability of death. Your ability to earn an income is your greatest asset, yet most people are more likely to insure their home and car before their income. Insuring your income should be a top priority. Planning ahead in case disability strikes makes good sense. Building a personal financial security plan can help you get an idea of the financial hardship disability may cause you and your family. It can also help you better prepare for the unthinkable. Accidents and illnesses are facts of life. They could happen to anyone at any time. Some quick facts:

  • 1 in 3 people, on average, will be disabled for 90 days or longer at least once before age 65.
  • The average length of a disability that lasts over 90 days is 2.9 years.

Ask yourself these Questions:
1-Would you be able to maintain your current lifestyle if you became disabled?
2-Would you be able to pay your monthly expenses?
3-Would you be able to pay your mortgage or will you have to sell your home?
4-Would you be able to fund your kid’s education?
5-Would you be able to fund your retirement?
6-Would you be able to afford a vacation?
7-Would your kids or family members be able to support you or pay your monthly expenses?

If you answered ‘No’ to any of these questions, you should think about getting Disability Insurance and protecting your income.

When protecting your most valuable asset, ask yourself, “How long could I live on my savings if my income stopped this very second?”

We can tailor each plan to meet the needs of employees, business owners, professionals and individuals whose occupations or work situations make it challenging to obtain coverage. Individual disability Insurance benefits are received tax free if you pay with personal income. Benefit periods can last 1-10yrs or till age 65, depending on the type of plan you choose. There are several types of basic policy benefits available with the plan and different options/riders you can choose to enhance your coverage. Some examples of riders you can choose for Individual Disability Insurance Plans are:

Own occupation rider
Professionals often have a significant investment in their occupation, including years of training and acquired experience. However, many feel that although they might be able to find alternative employment during a total disability, they would experience a drastic reduction in income. The own occupation rider allows the insured to work in another occupation while he or she is totally disabled in his or her own occupation and continue to receive disability benefits.

Cost-of-living (maximum 3% or 8% per year) riders
The cost of living benefit helps reduce the impact of inflation by providing yearly adjustments to the monthly disability benefit during disability.

Lifetime Benefits Rider
This rider will pay you a monthly income for life if you become totally disabled before age 65, as long as you remain totally disabled.

Return-of-premium (50%) rider
Adding the return-of-premium (50%) rider helps ensure the client has an opportunity to receive a benefit whether or not he or she suffers a disability.

Disability Plans for Self-Employed individuals & Business owners
Some of the plans offered include:

1-Buy/sell plan
The buy/sell plan is designed to provide the necessary funds to enable one or more business owners to purchase the shares of a disabled shareholder or partner in the event of total disability. This coverage provides funds to help complete the buy-out.
The buy/sell plan is ideally suited for owners of privately held businesses. The plan provides a single lump sum payment and is available for certain types of occupations. 3, 4, and 5. (A copy of the buy/sell agreement or a letter of intent to complete the agreement is required.

The buy/sell plan is available as long as:

  • The business is profitable;
  • There are two to five owners (single owners cannot be insured). Individual consideration may be given if there are more than five owners; and
  • Financial statements are provided for the two most recent fiscal years.

2-Overhead expense plan
The overhead expense plan is a non-cancellable overhead expense disability insurance policy which can provide a reimbursement of eligible business overhead expenses during total disability. The premium is level to age 65 (with the exception of the healthcare-profession rider). The policy is conditionally renewable on a modified basis after age 65, while the insured continues to work full-time and continues to have an ownership interest in the business.

The overhead expense plan is available to all occupation classes, however, certain policy provisions and maximum issue limits will be different depending on your occupation.