Product Overview
Disability Income (DI) insurance helps replace a portion of your income lost due to a disability. The policy is non-cancelable and guaranteed renewable to age 65, and conditionally renewable for life. It can be tailored to fit your client's needs.
Here are the 5 most common questions clients will have about Individual DI insurance:
- "When do I receive benefits?"
Clients receive benefits after incurring a qualifying disability and satisfying the policy's elimination period (typically 90 or 180 days).
- "How long do I receive benefits?"
The benefit period is the length of time benefits are paid. Options typically range from two years to age 65 (most common). Clients should buy the longest benefit period they can afford.
- "How much coverage can I purchase?"
The maximum benefit amount issued depends on a variety of factors, such as income, occupation and existing coverage.
- "How much will coverage cost me?"
Policies can be designed to meet most needs and budgets. Premiums typically cost between 1-2% of a client's income. Premium discounts may be available.
- "How do I qualify for benefits?"
An Individual DI insurance policy typically pays in three ways - Total Disability, Residual Disability and Catastrophic Disability.
Individual DI insurance is essential if the client does not have disability benefits through his/her employer. And while group long-term disability insurance provides a solid base on income protection, supplementing those benefits with an Individual policy is advised.
Group LTD insurance considerations:
- Benefit provisions within the policy are typically conservative.
- Cap on benefits may be too low for higher-paid employees, causing reverse discrimination.
- Bonuses and incentive pay are typically not covered.
- It typically limits disabilities considered self diagnosed.
- Benefits and premiums can be modified at renewal.
- The policy is usually not portable for the employee.
Individual DI insurance highlights:
- Premiums and benefits are guaranteed through age 65.
- Benefits are received tax-free (when paid with after-tax dollars).
- Quality benefit provisions are available.
- Bonuses and incentive pay can be covered.
- Policy and discounts are portable for the employee.
- Payment options are available (employer-paid or employee-paid).
Product Overview
This Policy continues contributions to a retirement plan. In the event the policy owner becomes too sick or injured to work for an extended time, this policy will pay a monthly benefit into a trust to be invested by the policy owner. At age 65/67, the trust will pay out the proceeds to the policyholder.
Product Overview
For persons who have pre-existing medical conditions, this policy will provide a 2, 5 or 10-year benefit. A list of the following conditions may be considered:
- Alcoholism
- Angioplasty
- Antidepressant users
- Anxiety
- Arthritis
- Bipolar disorders
- Cancer
- Cerebral palsy
- Chronic fatigue syndrome
- Heart by-pass
- Diabetes
- Drug abuse
- Epilepsy
- Fibromyalgia
- Hepatitis
- Lupus
- Kidney transplant
- Obesity
- Rheumatoid arthritis
- Sleep apnea
- Ulcerative colitis
Product Overview
This product will pay the expenses of a client's small business in the event the owner becomes too sick or injured to work for a period of time and as a result the company suffers a loss of revenue. The policy is designed to keep a small business running for a short time until the owner is back to work. Benefit periods are between 12-24 months.
The policy typically pays for any expenses allowable on the business tax return, including the salary for a temporary employee to replace the disabled owner. Income taxes and cost of inventory are generally not reimbursed under the plan.
Product Overview
This product is designed for small business owners who have partners or several owners. It allows the company to continue to operate if one of the owners becomes too sick or injured to work. The policy provides the cash for the other owner/owners to purchase the disabled owners share of the business. The benefit may be paid out as a lump sum or a monthly payment for as long as five years. Waiting periods can be from 1-2 years.
Product Overview
This product provides protection for the business in the event a vital employee becomes too sick or injured to work. The policy will pay a monthly benefit to the business to cover the financial loss of the absent employee or it can pay for a temporary worker while the key employee is out of work. This is a short term Policy, usually 12-24 months.
Product Overview
Three or more disability income policies placed in a year on individuals working for the same employer obtain a 10% premium discount and gender neutral rates. Gender neutral rates are very valuable to females-it can reduce premium up to 40%.
Target your small business owners. It is a great incentive for females. Encourage your clients to recommend others in their workplace. Once you point out the premium discount, they will be happy to share the names. It's a win-win for everyone.
Product Overview
No medical underwriting. Just a census required. Carve outs for executives. Excellent opportunity for employers to cover the LTD gap for the higher paid executives. Voluntary for groups of 15 or more, 30% participation required. Mandatory for groups of 5. Ten percent discount and gender neutral rates apply.
Target professional organizations with large executive population such as architects, attorneys, accountants, engineers, etc....Offer them a way to insure up to 75% of their income.