Disability Income Protection Plans
If you are on this page, you are on your way to better understanding why income protection plans are important to you. We have many carriers and programs to help you protct one of your greatest assets - your income and your ability to earn income in the future. We offer the programs below.
- Long Term Disability benefits
- Short Term Disability benefits
- Individual multi-life discounts
- Group Disability programs
- Key man coverage
- Business overhead expense coverage
We are appointed with many quality carriers and can help you find the best value for preferred risks or those with special challenges such as health problems.
- AIG American General
- LifeMap Assurance
- Petersen International
- The Standard
Below are some ideas you to consider:
Disability Income comes in 6 different areas - Your clients probably need at least one of them:
-Individual Disability - coverage to pay the rent and buy groceries when disabled.
-Business Overhead Expense (BOE) - reimburses the business owner for expenses to keep their business a going concern while they are disabled.
-Buy-Sell - coverage to complete a Buy-Sell agreement if a partner is sick or hurt for a year.
-Key Person - infuses funds into the business in case one of their important employees is disabled.
-Loan Indemnification - relieves a loan burden if client should become disabled.
-Retirement Coverage - puts funds into separate account to replace the IRA or 401(k) that is not happening due to disability.
Critical Illness coverage.
Standard Insurance delivers policies faster! We can use electronic delivery to place Individual Disability Income policies in your hands in hours instead of weeks with Standard's PolicyEX service.
- With Principal and MET - they offer a multi-life scenario with unisex rates. It can come out where it is more economical for the business owner to buy minimal coverage on 2 employee in order to get the discount.
Tax-Free! Don't forget that disability income benefits paid to the client are non-taxed. This means that if we are looking at a 60% replacement - the policyholder will probably be getting close to what they were netting from their income.
Key Person Disability Income - this nifty product infuses a business with funds in the case that one of their more important employees is away on disability. The business can do anything they want with the funds. The premium is not deductible - but then again the benefits come into the business Income Tax Free
Automatic Increase Benefits - almost all of the white collar companies have this benefit.
This is where the company will send the client a letter each year - for the first 5-6 years - letting them know that they are increasing the benefit of their policy by around 4%. All the client has to do is nothing - but pay the premium. (for a $5k benefit - 4% is $200/mth. Premium may run $2 or so a month). This is a great way to keep up a bit with inflation.
Mutual of Omaha - New Occupational Classes
Mutual of Omaha has just come out with a new Occupation Guide - They have upgraded quite a few of their occupations. This is the company that has Short Term Individual coverage; Accident Only disability coverage and Full Long Term Disability coverage. Their short term will go down to a 0 day elimination period and up to 24month benefit period.
Principal - they have just adjusted their Business Enhancer.
If you have a business owner who has been so for at least 2 years and earning over $100k - we can boost you up 2 classes!!! (on those occupations that are subject to the Enhancer). This means that someone could go from a 3A all the way up to their top class of 5A!!! That is quite a savings.
- Business Overhead premiums are always deductible. Benefits are paid reimbursing expenses, which are deductible - so it is a wash.
- Disability Buy-Sell premiums are not deductible. Benefits are normally tax free.
- Individual Disability premiums are usually not deductible. Only a C corp can deduct the owners premiums - in this case the benefits come taxable.
Critical Illness - Don't Use it - Get your Premium back.
With the Assurity Balance Critical Illness plan - if the client should die of any reason - the company returns their premium - less any benefit that has been paid. If a client should be diagnosed with a Heart Attack, Stroke, Invasive Cancer - they could get a lump sum up to $500,000!!
Underwriting Hassles? There are companies who write a certain amount without any medical - or financial requirements:
Principal - will write up through $3,000 a month - no medical/financial documentation - up to age 50
Union Central - will write up to $3000 without any medical. They will need financial's.
Standard - will write up to $2500 without any medical. They will need financial's.
MET - will also write up to $2500 without any medical. They also will need financial.
Business Overhead Expense - If you have any business owner - with less than 8 employees - you need to talk to them about BOE coverage. This could mean the difference between having their business fold and just fade away - or to have a viable office which can be sold if they aren't coming back