DISABILITY INSURANCE

 

Individuals

Protection you can’t afford not to have

If you were too sick or hurt to work, would you be able to meet your current financial obligations? Without proper income protection, you’d probably have to change your lifestyle and plans for the future. Personal income protection saves you from having to drain savings or business profits. Its basic coverage you can’t afford not to have

We consider disability protection to be the foundation of a solid financial plan. What do you have to pay your bills and build your retirement in the event of a disabling sickness or injury? 

EMPLOYER SICK PAY

Does your employer have sick pay programs for employees? Eligibility and payments vary from company to company. It's important to know in advance what payments might be available to you if you can't work. Ask your human resources manager for program details.

SOCIAL SECURITY DISABILITY INSURANCE (SSDI) AND WORKERS' COMPENSATION

These two programs form the cornerstones of financial security for a majority of disabled American workers.

SOCIAL SECURITY

If you become disabled, you may qualify for disability benefits through the Social Security Disability Insurance program. There is usually a six-month waiting period before SSDI benefits begin. Your eligibility and benefits are based on the number of years you've been contributing to Social Security via withholding from your paycheck. Visit the Social Security website for more information.

WORKERS' COMPENSATION

If you're injured at work or suffer a work-related illness, you may qualify for workers' compensation benefits. These benefits can help pay for the medical care and rehabilitation needed to help you return to work.

After a short waiting period, workers' compensation generally pays a portion of your former wages or salary. Benefits vary significantly by state and are restricted to a specific maximum and minimum amount. For links to your state's workers' compensation program, go to: www.workerscompensation.com.

PERSONAL SAVINGS

A small percentage of Americans are lucky enough to have savings, investments or other financial resources that can supplement or replace their income during a prolonged disability. The rest of us, unfortunately, are not so lucky. Any disability, especially one lasting more than 90 days, would quickly drain our savings. After all, Americans' savings rate is at an all-time low. A full 1/3 of Americans have no retirement savings and no pension, according to the Social Security Administration. Talk about stress!

"LAST RESORT" INCOME SOURCES

If all else fails, you can begin paying expenses with credit cards, get a second mortgage, take out a home equity line of credit, withdraw money from your retirement plan, and ask family and friends for assistance.

DISABILITY INSURANCE BENEFITS

Disability insurance can be an invaluable lifeline for disabled workers and their families.

  • If your employer offers disability insurance, make sure you fully understand what benefits are available and how your company's disability insurance program works.
  • If disability insurance is NOT provided by your employer, it can be purchased individually at affordable rates. 
  • Self-employed individuals can also benefit greatly by having disability insurance.

For all working adults (especially those in their 20s and 30s) to explain the need to replace their earned income and protect their financial security.

For employers or HR managers. This video explains how employee financial security is dependent on their earned income, and the potential implications of the employer’s moral obligation.

Business Owners

Are you protecting the right asset?

You may have spent years building and nurturing your business. That hard work has resulted in a foundation for a successful business. Yet, is that foundation as strong as it should be? 

BUSINESS OWNERS FACE A TRIPLE THREAT

If you became disabled and couldn’t run your business, how would you pay your utilities, your lease or employee salaries? Would you have to spend your hard earned savings, your retirement assets or even your child’s college education funds to make ends meet at home? As a business owner you have three key threats in the event of disability.

  1. keeping a roof over your head. You’re ability to work and earn an income is your most valuable asset
  2. keeping your business’ door open. If you become too sick or hurt to work, would your customers take their business elsewhere?
  3. keeping your business investment intact. What impact would your disability or partners disability have on the business?

It’s important to protect yourself and your business against the unexpected. Think about the effect on your business and your employees if a disabling illness or injury leaves you, another owner or a key employee too sick or hurt to work.

Business owners rank business protection as their #1 priority and income protection as their #2 priority. Most business owners realize even a temporary closing can be financially devastating to the business, yet half of business owners do not have to any type of disability coverage for themselves or their key employees. Business protection insurance helps maintain business value and credit ratings. Having benefits to reimburse business expenses helps ensure the doors of the business remain open in the event of a business owners or key employee’s disability. Overhead insurance serves as interruption protection if the owner becomes too sick or hurt to work. Disability Buy-out insurance funds the purchase of a disabled business owners interest under a buy sell agreement without using business cash flow, attaining loans from a bank or having to sell shares of the business to get working capital. Key person replacement insurance provides benefits to business in the event a key employee who is critical to the success of the business becomes disabled. Did you know the average cost to replace an employee is 1.5 times his or her salary? Fort op performers, that cost typically runs between 2 and 3 times their salary.

HELP YOUR EMPLOYEES PROTECT THEIR RETIREMENT DREAMS

Workers rank their ability to earn an income and their retirement savings as their #1 and #2 most valuable financial resource. More than 69% of the workforce has no long-term disability insurance.  Retirement funds and dreams are at risk as contributions to a 401(k) plans, employer matches and Social Security contributions will cease. Consider Employer-paid group and Voluntary payroll-deduction coverage.

Personal Income. Key-person Insurance. Overhead Protection. Buy-out coverage. Employer paid Group Benefits. Voluntary Payroll-deduction Benefits.


For all private practice professionals and small business owners. This video explains the need to cover business overhead expenses during extended periods of disability.

For all young doctors, dentists, pharmacists, chiropractors, accountants and attorneys to explain the need to protect the value of their investment in their professional career.