Do I Need Disability Insurance?
A disabling accident occurs on average once every second in the United States today. Almost 18.5% of Americans currently life with a disability and 1 out of 4 people in the US workforce today will suffer from a work-ending disabling injury before reaching retirement age.
Disability Insurance (DI) is designed to insure the policyholder’s earned income against the potential risk that a disability will prevent the policyholder from completing the core functions of their employment. It is also known as Disability Income Insurance or Income Protection.
Disability insurance offers the beneficiary financial protection in cases of inability to maintain composure due to psychological disorders or in cases of an injury, illness, or medical condition that leads to physical impairment and/or inability to work. A comprehensive DI policy usually incorporates paid sick leave, short-term disability benefits (STD), and long-term disability benefits (LTD).
Disability Insurance Options
Individual Disability Insurance
Individual Disability Insurance is appropriate for individuals whose employers do not provide disability benefits, or for self-employed individuals who require disability coverage. Premiums and available benefits differ between companies, occupations, states, and countries. Policies with a higher premium can offer more monthly benefits, benefits for longer time periods, and start benefit payments more quickly. Policies with a higher premium also define disability more broadly, allowing the policy to pay benefits in a wider variety of circumstances.
High-limit Disability Insurance
This type of DI policy maintains individual disability benefits at 65% of earned income regardless of income level. This type of coverage is usually supplemental to standard disability coverage. Benefits can range anywhere from an additional $2,000 per month to $100,000 per month. Some companies have increased single policy issue and participation (individual or group long-term disability) up to $30,000.
Key-person Disability Insurance
Key-person DI can protect a company or organization from financial hardship resulting from the loss of a key employee due to disability. Benefits may be used to hire a temporary employee in cases of short-term disability, or in cases of long-term disability, benefits can be utilized to defray costs of hiring a replacement, including but not limited to recruitment, training, loss of revenue, and unfunded salary continuation costs.
Business Overhead Expense Disability Insurance
Business Overhead Expense (BOE) coverage offers benefits designed to reimburse a company or business for overhead expenses resulting from a disability suffered by the owner. Benefits incorporated into standard BOE policies include: rent and/or mortgage payments, leasing costs, utilities, laundry/maintenance, accounting/billing and collection service fees, business insurance premiums, employee salaries and/or benefits, property tax, and other regular monthly expenses.
At SunGate Insurance Agency, our goal is to provide you with the right disability insurance policy to offer you and your family peace of mind! Contact us today find the policy that works for you!