Strategies > Insurance > DISABILITY INCOME INSURANCE

–WHY DISABILITY INCOME INSURANCE?–

 

YOU CAN’T WORK. FORTUNATELY, YOUR COVERAGE WILL.

The most common myth about disability income insurance is that coverage is only used for rare, catastrophic accidents. The fact is, most people rely on the insurance to cover the income they’ve lost due to disabilities caused by conditions such as heart disease and arthritis. Be informed – protect yourself and your business.

 

–TYPES–
 

INIDIVIDUAL DISABILITY INSURANCE


What It Is

  • Replaces income if you’re too sick or injured to work.
  • Can supplement long-term disability coverage that you may have through your employer.


Benefits

  • Replaces a percentage of base salary and regular bonus or incentive income.
  • Can cover retirement contributions and student loan payments.
  • When you pay for this individual coverage with after-tax dollars, any benefit payments you receive are tax free.
  • Your policy belongs to you even if you change jobs.
     

Who It's Best For

  • You or your family relies on your income.
  • You are a high-earning individual who needs more income protection than the coverage offered by your employer.
  • You don’t have any disability insurance through work. 
 

small business protection


What It Is

As a small business owner, different types of disability insurance can help protect your business if you can’t work as a result of an injury or illness.  


Benefits

  • Provides several options to help your business continue meeting its daily expenses – including employees’ salaries.
  • Offers funding to buy out a partner who can’t work due to illness or injury.
  • Continues payment of business loans.


Who It's Best For

You’re a small business owner who wants to be certain your business can keep running if you become unable to work due to illness or injury.

 

basic disability offered by employer


What It Is

Replaces baseline income if you’re too ill or injured to work.
 

Benefits

Provides a good foundation for income protection – typically safeguards from 40% to 60% of your base salary after taxes.
 

Who It's Best For

Your employer provides this coverage. Basic coverage protects about half of your income.

 

supplemental individual disability income 


What It Is

Extra coverage that your employer can offer on top of the base long-term disability insurance they may already offer you.
 

Benefits

  • Can help you protect more of your base salary as well as different types of income like bonuses and incentive compensation.  
  • You own the policy, even if you change jobs.
  • No medical exam is required, making it an easy option.
     

Who It's Best For

  • Your employer offers this coverage and you want to safeguard more of your income.
  • Most of your income is derived from bonus or commissions.