What is Disability Insurance?Disability Insurance DI or disability income insurance is financial protection for the unexpected illness, disease or medical injury which results in the inability of an individual or employee to perform the duties of the job one was trained for in order to continue to work and earn an income or living wage.
For example, the worker may suffer an injury due to an accident, illness or disease that leads to a physical impairment or the inability to work. The benefits of a sound DI plan of insurance often includes paid sick leave, short-term disability benefits (STD), and long-term disability benefits (LTD). In the US, statistics indicate that a disabling event occurs on average once every second. In fact, Nearly 18.5% of Americans are currently living with a Disability, and 1 out of every 4 persons in the US workforce will suffer a disabling injury prior to retirement. Types of Disability InsuranceDI Individual Disability Insurance - Available for any self-employed individual or employee whose employer does not provide benefits may purchase DI insurance protection. The DI coverage features and premium cost for the selected disability income insurance benefits available often differ between insurance companies and states of residence. Other factors that determine the premium cost of a DI insurance plan are age, one's occupation, the $$ monthly benefit, status of one's health, waiting period and the time period for income benefits that are paid to a disabled individual. In general, premiums are higher for policies that provide more $$ monthly benefits, offer benefits for longer periods of time, and start payments of benefits more quickly following a disability event. Additionally, DI insurance premiums tend to be greater for policies that provide a broad definition of disability.
Key-person Disability Insurance - Key Person Disability Income Insurance provides financial benefits that may result from the loss of a key employee due to disability, which causes a financial hardship upon the business. The company can use the benefits to hire a temporary employee should the disabled employee's disability appear to be short-term. In the case of permanent disability, benefits are used to help defray costs related to hiring a replacement, including recruitment, training, startup, loss in revenue and unfunded salary continuation costs. Business Overhead Expense Disability Insurance - Business Overhead Expense (BOE) DI Income Insurance affords protection to a business to reimburse the business for the overhead expenses that result from the disability of the business owner. Business expenses that qualify for reimbursement might include: rent or mortgage payments, utilities, leasing costs, laundry/maintenance, accounting/billing & collection service fees, business insurance premiums, employee salaries, employee benefits, property taxes and other continuing monthly business expenses. Please Contact us to schedule a conversation with a financial advisor who will listen to your financial objectives and needs for your household or small business, securing certainty for you against the risks of financial harm to a loved one, your family or a key person in your business. |
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