Wealth &
Protection Planning

Disability Insurance

If you are unable to work due to a sickness or injury, disability income insurance can help you meet expenses and maintain your standard of living.  It can help you pay bills like your mortgage, tuition, and car payments, and help cover expenses for food, clothing, and utilities.  By replacing a portion of your income, disability income insurance can help provide financial security until you get back on your feet and return to work. 

There are two types of disability insurance:
  • Short-term disability insurance can replace a portion of your income during the initial weeks of a disabling illness or accident.
  • Long-term disability insurance can replace a portion of your income after those initial weeks, for an extended period.

You may have one or both of these through your employer.  Many people also choose to purchase individual disability insurance on their own.  Individual disability insurance can provide protection for people who do not have disability insurance available through their workplace or may be used to supplement group coverage through their workplace. 

Long-Term Disability:
  • Suitability
    • Suited for any individual or business owner under age 60 with employment income who has insufficient liquid assets to sustain a loss of income due to a disabling injury or sickness.
  • Product Features
    • Definition of Disability - Defines under what circumstances a person qualifies for benefits. The most liberal definition explains disability as the inability to do the substantial duties of one's current occupation.
    • Renewal Provision - Indicates under what circumstances the policy can be renewed and if premiums can be raised. The most liberal definition is "Non-cancelable Guaranteed Renewable," which means the policy can only be canceled due to nonpayment of premium and premiums cannot be increased.
    • Monthly Benefit Amount - Generally up to 60-75 percent of employment income.
    • Elimination Period - This is the period of time when no benefits are payable, generally 90 days to two years.
    • Benefit Period - This is the length of time benefits will be payable. Time periods typically range from two years to age 65.
    • Waiver of Premium - Cost of policy is waived after 90 days of disability.

Contact a STRIVE Wealth Advisor for more information about disability insurance. 

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