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Disability Income Protection Insurance
If you are viewing this page, you are on your way to better understanding why disability income protection plans are important to you, your family and your business.  Most people need to be actively working to earn an income.  If you can not work due to illness or injury, it is likely that your income would stop.  Disability insurance is the best way to protect yourself against this type of loss. Request a quote for disability income protection

We have a variety of income protection products

  • Long Term Disability benefits
  • Short-Term disability
  • Individual  
  • Group disability and Multi-Life
  • Key man coverage
  • Business overhead expense coverage
  • Optional benefits include catastrophic illness coverage, return of premium 

We represent the carriers below, but have access to more if necessary

  • AIG American General
  • Guardian
  • LifeMap
  • MetLife
  • Mutual of Omaha
  • Petersen International
  • Principal
  • The Standard
  • Unum

Below are some ideas for you to consider:

  • Disability Income comes in 6 different areas - You probably need at least one of them:
    -Individual Disability - coverage to pay the rent and buy groceries when disabled.
    -Business Overhead Expense  - reimburses the business owner for expenses to keep their business a going 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.

  • Social Security Disability - Don't fully rely on this!
    According to Consumer Reports (8/22/11), Social Security may not be able to make disability payments past 2017. With the economy and the aging baby boomers - the number of claims has doubled. The really bad item is that with all these claims - it is taking a good 18 months - 2 years for the administration to consider your claim. Protect yourself with your own individual Disability Income contract!!!!

  • 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. 

  • 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!!

  • 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

  • COLA - Cost of Living Adjustment
    This is a rider that is frequently misunderstood. It does NOT increase the benefit from day one of the contract. It DOES increase the benefit each year - once the policyholder has been on claim for over a year. Most of the companies now have an Automatic Increase Benefit that will increase the benefit from day 1 - but normally it isn't a rider - just a benefit of the contract.

  • IRA - 401(k) Insurance?
    When a person goes on disability - not only does their income stop, but so does their ability to put away retirement funds for the future. Disability Income will normally pay to the social security retirement age - but what happens then? With Retirement Disability coverage - you have a separate contract that deposits monthly amounts into a trust for your use in the future.

  • Non-Cancelable - Guaranteed Renewable - What do these mean?
    Almost all individual disability income plans are Guaranteed Renewable. This means that as long as the client pays the billed premium - he will have coverage. If the company proves that they need to increase premiums - they may be able to do so - but it would have to be on a whole class (like all 4A's). Non-Cancelable - these plans are Guaranteed Renewable - but have another layer. The companies cannot raise premiums throughout the term of the contract - usually age 65/67/70.

  • Disability Income - Elimination Period
    Did you know that if you have a 90 day elimination period - that you do not have to be disabled consecutively for those 90 days? A lot of people try going back to work for a week/month or two and find that they can't. Most companies will give you a total of 180 days for a 90 day elimination to be filled in.

If you have an existing group disability program for your employees, or for yourself, consider the following information about annual income updates

Updating employees' earnings is an important task that's necessary to make sure your employees get the financial protection they need.  Be sure to review and confirm or update your employees’ earnings information.  Review earnings information based on the definition of earnings outlined in your contract. If you need to confirm the Definition of Earnings, you can contact us for assistance.  Many carriers allow earnings updates online.  If all of your earnings or your employee earnings are updated with your disability income insurance carrier, then no further action is needed.