Flying Bee

DISABILITY INSURANCE


Just over 1 in 4 of today's 20 year-olds will become disabled before they retire. If you're not talking to your clients about protecting their income, you should be. Let USI guide you through the discussion of Disability coverage with your clients.


Personal High Limit Disability Insurance

It can be hard to face the fact that a disability can happen at anytime to anyone. Clients without high limit disability insurance could potentially face huge financial losses. Your clients need to protect themselves and their families from the ruinous fiscal consequences of a debilitating injury or illness. High wage earners whose income consists of significant 'Bonuses', can purchase limits up to $100,000/month.


Guaranteed Issue Multi-Life Disability Insurance

If a disability inhibits one from working the financial strain can be catastrophic. Because many highly compensated employees have difficulty obtaining adequate and reasonable amounts of disability insurance through their group long term disability insurance plans, USI has high limit supplemental group plans to consider.


Buy-Sell Disability Insurance

While most people plan for an unexpected death, many overlook the possibility of an injury or sickness permanently disabling one of the partners; even though a disability is much more likely! Buy-Sell Disability Insurance is invaluable in this type of situation.


Loan Indemnification Disability Insurance

Often times, when a bank lends money to a business, they will require the borrowers to provide disability insurance covering the payments. This is ensures the bank that, should the borrower become sick or hurt, the payments will still be made. The preferred solution would be to prescribe disability insurance that would pay the monthly loan payments and/or pay off the remainder of the loan balance.


KEY POINTS WHEN DISCUSSING DISABILITY INSURANCE WITH CLIENTS

Did you know?

  • Disability insurance replaces 60%-80% of your income for a set period of time if you're unable to work.
  • Illness, injury or other conditions that prevent you from being able to do your regular job could qualify as a disability.
  • Disability insurance from employers does not offer much coverage because they're short-term plans and do not apply if you leave that employer.
  • The benefit payment from an individual policy is tax-free, but benefits from an employer plan may be taxed.

Should you get Disability Insurance?

  • According to 2017 data from the Social Security Administration, a 20 year old worker has a 1-in-4 chance of becoming disabled, for at least 1 year, by the time they reach retirement age.
  • Because of how difficult it is to qualify for Social Security Disability, it is recommended that everyone should consider Disability Insurance.
  • People with a higher standard of living would be greatly impacted if they lost income for just a few months.
  • Married couples and families typically rely on two incomes to pay all of their bills each month, so losing one could cause issues.
  • If you have significant debt, whether that's from a mortgage, an auto loan, or student loan debt from getting an advanced degree.

Are there different types?

There are 3 different types of disability insurance:

  • Short-Term Disability - Will pay up to 80% of your gross monthly income, but lasts just six months, this is normally though an employer.
  • Long-Term Disability - Will pay 60% of your gross monthly income, and payments may last for anywhere for two years up until you retire.
  • Social Security Disability - This is a free form of disability insurance from the government and will only cover individuals with a severe disability. Notoriously difficult to qualify for and most are better off with Short Term Disability or Long Term Disability.
  • Private Disability Insurance - Is often overlooked but it can fill the coverage gaps left open by health insurance plans and life insurance policies.