As a family-owned business, we understand that disability insurance is all about protecting your income if you are unable to work. We can help you create a great plan that will provide you maximum robust coverage by looking at all the different types of disability insurance policies.
Your Most Valuable Asset
Have you ever stopped to think about what your most valuable asset is? Ask most people and they tend to say things like their home, or their car, or perhaps something like a 401k nest egg they have been saving. Business owners or other professionals may say it is their business or private practice.
We like to look at things a bit differently. Your ability to earn an income, your paycheck, is your most valuable asset. For most people, the present value of all your future earnings is well into the millions of dollars. Much more than any other asset you own or the value of your business or practice.
Most of us agree that buying a home without having homeowners insurance would seem like a bad idea. Same with a car or most other expensive assets. Many of us even have insurance for our smartphones in case of something unexpected.
How many people have insurance to protect their income? Many have disability income insurance offered through their employer as an employee benefit and think they are covered. The fact is, rarely does employer sponsored disability insurance provide adequate coverage. We recommend that all of our clients do a deeper dive into finding out exactly what is covered by their employer.
We provide our clients with the education and services they need to address and protect all of their risks. We can search the all the insurance companies to find the best solution at a reasonable price to protect our clients’ most valuable asset, their income.
Covering the disability risk is often the first step in implementing a solid plan to grow your wealth so you can achieve all of your personal, professional and financial goals.
Schedule a time with one of our professional advisors to help you understand and address all of your risks.
Frequently Asked Questions
I already have Disability Insurance from my employer, why do I need more?
Your disability income insurance covered through your employer may be a good start, but it is rarely enough to cover all of your expenses. Most plans cover up to 60% of your salary only, things like bonuses or overtime are not covered. Also, most employees lose their other benefits, such as health insurance, when they are on disability and have to make a monthly COBRA payment. Retirement plans stop being contributed to, putting you behind. Simply put, relying solely on your employer for Disability Insurance is a mistake.
It seems like such a small risk, what are the chances anyone is ever going to need Disability Insurance?
It may seem like a small risk, but the fact is that roughly one in four people will become disabled at some point during their career. This does not mean permanently disabled, but at some point a quarter of us will be out of work and not earning a paycheck for 90 days during our working lives.
What about Social Security, doesn’t that cover Disability as well?
Social Security may only pay out if you cannot work in any job at all. It is worth having a consultation with a professional and doing a deeper dive on exactly what is covered and what is not.
I don’t do physical labor, I could do my job just as well from a wheelchair, why do I need Disability Insurance?
Most disabilities may not be injury related, but may occur due to our stressful lifestyles. If, for example, you have a career as an attorney, Wall Street analyst, or other high cognitive functioning job, you may not be able to mentally perform the functions of your job, even from a wheelchair.
What is an elimination period?
Elimination period is the time between becoming disabled and the time that your disability payments would start. Most disability contracts have a 90 day elimination period, meaning if you became sick or injured and lost your income, after 90 days your contract would start paying you.
What does “any occupation” and “own occupation” mean?
This language in the contract is used to define what qualifies as a disability. An “own occupation” contract pays out if you are unable to work in your usual occupation or your chosen career. An “any occupation” contract pays out only if you are unable to work in any occupation or job at all.
Let’s say, for example, a surgeon develops Parkinson’s Disease and can no longer perform surgery. An “own occupation” policy would pay whereas an “any occupation” policy may not because the surgeon would have other career options, such as teaching at a medical school. If you have disability insurance through your employer, it is most often an “any occupation” policy.
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