Disability

Personal Disability Insurance

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Why should I buy my own individual disability insurance?

Individual disability insurance can be ideal for anyone who doesn’t receive disability insurance through work. It’s also an option for high earners looking for extra coverage. Not only can you buy this policy on your own, it also stays with you even if you change jobs. If you want more protection, you may want to add extra coverage on top of your long term or individual disability plan. Supplemental disability insurance can be a great add-on for employees and individuals who want to protect a greater percentage of their income, bonuses or commissions.

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Short-Term Disability vs Long-Term Disability Insurance

The biggest difference between short term and long term disability insurance is the period of time you’ll receive benefits if you’re unable to work. This period is called the benefit period.

The name says it all. Short-term disability insurance is designed to cover you for a little while after an injury or illness keeps you out of work, and this type of coverage typically covers you for a term between 13-26 weeks and replaces about 40% income during that time frame (though some policies go as high as 70%).

With long-term disability, you may be able to receive benefits for the rest of your life. These policies have benefit periods that vary depending on your plan - from five years all way up until retirement age!

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Common misconceptions about disability insurance?

A common misconception about disability insurance is that its sole purpose is to cover against catastrophic events resulting from accidents. Disability income insurance can be helpful in protecting against the many financial setbacks that often come with an illness or injury. It's not just for unstoppable forces like accidents, but also covers you when your body becomes unable to work due to chronic conditions such as cancer.

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Individual disability insurance features & riders?

• Waiver of premium
• Hospice Care
• Unemployment premium suspension
• Occupational Rehabilitation
• Modification and access benefit endorsement
• Future increase option
• Cost-of-living adjustment
• Catastrophic disability benefits
• Student loan protection rider
• Retirement protection
• Unemployment waiver of premium
• Social insurance substitute
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States that offer short-term disability insurance?

Currently the states of California, Hawaii, New Jersey, New York, and Rhode Island require employers to offer a form of short-term disability, but each has its own requirements and limits.

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Why you need disability income protection before you are sick or injured?

• You get the most favorable terms by buying individual disability income insurance before you need it.
• Once you have your policy, your monthly payment is guaranteed, and the insurance company can never cancel your coverage as long as you make your payments on time.
• You can select customizable options and these options let you increase coverage as your income grows.

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Commercial Disability Insurance

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What is disability insurance?

Disability Insurance covers a portion of an employee’s income when they lose their ability to work due to a non work-related illness or injury. There are two types: short-term and long-term disability plans. Employers can offer either or both depending on their needs.

Short-term disability covers a portion of the policyholder’s salary for a short period, which can vary depending on the policy. However, it’s usually covered for three to six months after the incident that left them disabled.

Long-term disability usually comes into play when the employee holding the policy is disabled to the point of being unable to work for at least six months. It can be extended for years, even until the policyholder retires or reaches the age of 65, in which case benefits will end.

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Disability Insurance vs Workers' Compensation

Disability insurance provides income in case a business owner or employee is unable to work due to an illness or injury that occurred away from work. Workers’ compensation provides insurance for work-related injuries, illnesses, and disabilities.

Options to consider?

When it comes to protecting business revenues, the following products should be considered in the event the owner or key employee suffers a disability:

• Business Overhead Expense
• Business Loan Protection Rider
• Key Person
• Business Owner/Partner Buy-Out
• Executive Carve-Out

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Common misconceptions about disability insurance?

A common misconception about disability insurance is that its sole purpose is to cover against catastrophic events resulting from accidents. Disability income insurance can be helpful in protecting against the many financial setbacks that often come with an illness or injury. It's not just for unstoppable forces like accidents, but also covers you and your employees when your body becomes unable to work due to chronic conditions such as cancer.
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Do I need disability insurance?

You are required to carry short-term Disability Insurance for your employees if you live in a state where this type of insurance is mandatory. States that mandate professional disability insurance include:

• California
• Hawaii
• New Jersey
• New York
• Rhode Island.

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