Disability Insurance
What would you do if your income stopped today?
Where would the money come from for your living expenses?
Would your business survive if you, a partner or an employee were disabled?
Disability insurance provides you with financial security when an accident or illness causes you to be disabled and unable to work or earn an income.
Before examining the different options available on a disability policy, there are three primary questions that have to be answered:
- How long do you have (are you willing) to be disabled before the policy starts to pay out upon a disability (i.e.: 30, 60, 90, 180, 365 or even 720 days)?
- How long will the benefit coverage last (i.e.: 2 years, 5 years, or until age 65)?
- How much monthly protection do you require (i.e.: $2,000, $3,500, $5,000 a month) of benefit (payout)?
Policies may offer a number of options (riders) including:
- COLA – Cost Of Living adjustment (inflation protection)
- Partial Refund of premiums (refund of 70% of premiums every eight years if no claims)
- FIO – Future Insurability or Needs Option (buy more protection coverage as your income increases
- Own Occupation definition
- ACB – Accidental Death Benefit
- Catch Up rider – once disability payments start, you receive the benefit for the months during the waiting period to help catch up on your finances
- Partial Disability – if you are not totally disabled, but due to injury or sickness you are unable to perform one or more of the important duties of your Regular Occupation, or you are unable to perform the duties of your Regular Occupation duties for at least 50% of the time.
* note – not all of the above listed benefit riders are available to all policies.
With disability insurance, once the givens are determined: age, sex, occupation, smoking status & the appropriate rate or classification is known, it is then a case of multiplying the various rates for the monthly benefit to be provided. One of the benefits of a private disability insurance policy (as opposed to a group or affinity program) is that once issued, it can never be changed by the insurance company, and the plan can be maintained up to age 65. You are allowed to make multiple claims for the same or different causes. Should your needs change over time; you have the option to reduce or eliminate the coverage at any time.
Please contact us to review your needs and current protection. |
