A quick but informative story from one of our agents at Quotebroker Insurance Services:
I had a conversation today with a prospective client who had been told he should look in to disability income protection, but he just didn't "get the point" of the coverage. I thought it may be helpful to give the 60 second guide to Disability Income Protection.
Disability income protection insurance does exactly that- protects your income. This type of insurance is lifestyle protection- It protects everything you do- the car you drive, the house you live in, the restaurants you dine in. If you were injured and couldn't work, imagine the lifestyle changes you'd have to make.
But at what cost? On average, Disability Income Protection insurance will cost you 3% of your gross income yearly. So if you were offered a job at $100,000 yearly and if you become sick or disabled you would be offered "Best Wishes" from your company or a job that offered $97,000 yearly and if you were to become similarly disabled you'd received about $60,000 yearly- which would you take?
It's a no-brainer, but many forgo the opportunity to purchase this vital product until it is too late. As with most insurance products, the costs rise as you get older so purchasing a policy sooner rather than later is in your best interest. Protect what you have now or give up all you have later.
Showing posts with label Disability Insurance. Show all posts
Showing posts with label Disability Insurance. Show all posts
January 4, 2011
August 28, 2008
Disability Insurance is your friend
A disability insurance policy is no more than a promise to pay, whether you become too sick or injured to work.
No matter how healthy you are today, you are still vulnerable to a disability caused by an unexpected illness or accident. Your ability to earn an income is considered your most important asset - not your home, boat or investments. If your income suddenly stopped, how would you maintain your household? Who would make those retirement contributions? Without an income, you would most likely sell or liquidate your other assets.
You are probably better prepared for death than for disability, however your chances of becoming disabled are much greater. The odds or the probability of Death vs. Disability * for every 1,000 people before age 65 is noted below.
Male Age 30 / 225 deaths / 331 disabilities
Male Age 40 / 218 deaths / 291 disabilities
Female Age 30 / 162 deaths / 566 disabilities
Female Age 40 / 148 deaths / 452 disabilities
* A long term disability lasting 90 days or more
If you think you can rely on others, you can't. Social security offers only limited benefits and 57% of all initial claims are denied. Group Coverage (if you have it) is not portable if you change companies. Benefits are also limited. Workman's Comp offers limited benefits, however you must be injured on the job. Do you have enough savings to support yourself for the rest of your life? You are unable to borrow money because your income has stopped. Will your assets be sold at fair market price or will you be forced to liquidate? Even then will you have enough money to support yourself or family?
The only way to protect your income, family and personal dignity is to own a personal disability income protection plan, aka Disability Insurance Plan. Qualified insurance specialists can assist you in designing a plan to meet your needs. Plan on spending 1.5 to 3% of your income for a quality disability insurance policy. Terms vary from company to company, so compare products carefully. QuoteBroker represents multiple insurance carriers and can provide you with an unbiased approach to selecting the best plan for your particular needs.
More technical information will be published soon.
No matter how healthy you are today, you are still vulnerable to a disability caused by an unexpected illness or accident. Your ability to earn an income is considered your most important asset - not your home, boat or investments. If your income suddenly stopped, how would you maintain your household? Who would make those retirement contributions? Without an income, you would most likely sell or liquidate your other assets.
You are probably better prepared for death than for disability, however your chances of becoming disabled are much greater. The odds or the probability of Death vs. Disability * for every 1,000 people before age 65 is noted below.
Male Age 30 / 225 deaths / 331 disabilities
Male Age 40 / 218 deaths / 291 disabilities
Female Age 30 / 162 deaths / 566 disabilities
Female Age 40 / 148 deaths / 452 disabilities
* A long term disability lasting 90 days or more
If you think you can rely on others, you can't. Social security offers only limited benefits and 57% of all initial claims are denied. Group Coverage (if you have it) is not portable if you change companies. Benefits are also limited. Workman's Comp offers limited benefits, however you must be injured on the job. Do you have enough savings to support yourself for the rest of your life? You are unable to borrow money because your income has stopped. Will your assets be sold at fair market price or will you be forced to liquidate? Even then will you have enough money to support yourself or family?
The only way to protect your income, family and personal dignity is to own a personal disability income protection plan, aka Disability Insurance Plan. Qualified insurance specialists can assist you in designing a plan to meet your needs. Plan on spending 1.5 to 3% of your income for a quality disability insurance policy. Terms vary from company to company, so compare products carefully. QuoteBroker represents multiple insurance carriers and can provide you with an unbiased approach to selecting the best plan for your particular needs.
More technical information will be published soon.
March 21, 2008
Disability Insurance for Business Owners
If you are a business owner, the potential of a disability poses multiple threats:
Keeping a roof over you and your family's heads - How long could the business continue to pay your personal salary? Individual Disability Income Insurance could help.
Keeping your business' doors open - How will you cover your business expenses if you aren't there to bring in income? Overhead Expense Insurance could help.
Keeping your investment intact - How will you get the funds to purchase a disabled co-owner's interest if he or she should become disabled? Disability Buy-Out Insurance could help.
If you have employees, could they afford to live without a paycheck? If you provide group long-term disability insurance, it provides a great foundation for employees' income protection. However, the benefits are typically 60% of earned income before taxes. Additional coverage may be necessary to provide complete protection. In addition, when just three or more individuals with a common employer* obtain individual disability income protection, all may be eligible to receive a premium discount - including you!
If becoming disabled may seem unlikely, the odds may surprise you. Nearly 1 in 5 Americans will become disabled for 1 year or more before the age of 65.
The other thing to keep in mind is that an accident or illness that keeps you out of work for a period of time can be very costly. That's because people who become disabled not only need to continue providing for loved ones, but for themselves as well. A disabling injury or illness could lead to medical bills, modifications to your car or home, or other unforeseen needs that can be quite expensive.
For all these reasons, almost anyone who works whether they're single, married, with children or without should consider disability income insurance. For more information visit QuoteBroker
February 21, 2008
Don't rely on Social Security Disability Insurance
Though SSDI is an important source of disability income protection, the definition of disability under SSDI is very restrictive. “If” you qualify, you must have significant physical or mental impairments that prevent you from working in any gainful employment activity (In 2004, gainful employment earnings were established at $810 per month) additionally, to qualify for these benefits your disability must be expected to last for at least a year or death. If you know anyone that has gone through this process, he/she will tell you that it isn’t easy and can last months or years to receive a qualifying letter. Meanwhile you must see the state doctors, social workers and administrative personnel, all of which will determine whether or not you can obtain gainful employment. Remember $810 a month can be earned flipping burgers or being a night security guard.
The only way to protect your assets is the coordination of all available disability insurance offering. This combination includes; 1) Your personal disability coverage 2) Your company disability income program (if available) and last 3) Social Security Disability Income.
Many companies provide short term disability benefits; however many do not offer long term coverage options. Although group insurance tends to be less expensive, the contractual language is often very restrictive and offers few benefit options. If you don’t plan on retiring with your employer into your mid or late “60’s”, you may want to use your monthly premium contribution to purchase additional personal coverage. Remember you can’t take your group disability policy to your next employer.
Protect your most important asset – your ability to earn income. A personal disability policy is more expensive, however offers better protection and future benefits if you become disabled, you are unable to return to work fulltime or you can not work in your employment specialty. The cost will average 3% of your income and become much more expensive as you get older. Buy as much as you qualify for while you are younger and working.
As a final note: Long Term Disability is usually caused by a medical illness. Only 10% of all disability claims are due to accidents and less than 4% were from work related “workman’s comp” incidences. To request more information, visit my website.
* Claim statistics offered by a 2004 Insurance Commission study.
The only way to protect your assets is the coordination of all available disability insurance offering. This combination includes; 1) Your personal disability coverage 2) Your company disability income program (if available) and last 3) Social Security Disability Income.
Many companies provide short term disability benefits; however many do not offer long term coverage options. Although group insurance tends to be less expensive, the contractual language is often very restrictive and offers few benefit options. If you don’t plan on retiring with your employer into your mid or late “60’s”, you may want to use your monthly premium contribution to purchase additional personal coverage. Remember you can’t take your group disability policy to your next employer.
Protect your most important asset – your ability to earn income. A personal disability policy is more expensive, however offers better protection and future benefits if you become disabled, you are unable to return to work fulltime or you can not work in your employment specialty. The cost will average 3% of your income and become much more expensive as you get older. Buy as much as you qualify for while you are younger and working.
As a final note: Long Term Disability is usually caused by a medical illness. Only 10% of all disability claims are due to accidents and less than 4% were from work related “workman’s comp” incidences. To request more information, visit my website.
* Claim statistics offered by a 2004 Insurance Commission study.
February 14, 2008
Disability Insurance can also protect your business
Personal Disability Income Insurance can assist you to maintain your life at home - mortgage payments, groceries, utilities and auto payments. How would your business survive without you?
If you become disabiled, your business will still incur expenses. Rent or mortgage payments, Staff salaries, utilities, advertising and equipment lease payments. If you run a professional practice would you need a skilled broker, doctor or attorney to assume your responsibilities until you return?
Rather than closing your business or loosing key employees, there is a solution. Many insurance companies that offer personal disability income protection, also offer Disability Overhead Protection policies. With proper coverage your business can continue until you return, or if you remain disabled this protection will keep the business operating until you can find a qualified buyer. For more information contact Quotebroker
If you become disabiled, your business will still incur expenses. Rent or mortgage payments, Staff salaries, utilities, advertising and equipment lease payments. If you run a professional practice would you need a skilled broker, doctor or attorney to assume your responsibilities until you return?
Rather than closing your business or loosing key employees, there is a solution. Many insurance companies that offer personal disability income protection, also offer Disability Overhead Protection policies. With proper coverage your business can continue until you return, or if you remain disabled this protection will keep the business operating until you can find a qualified buyer. For more information contact Quotebroker
February 11, 2008
Paycheck Insurance - Why you need it ..
Life insurance industry statistics tell us that at the age of 35 you are 10 times more likely to be disabled from an illness or injury than you are to die from it.
How will you pay the bills? The mortgage payments, cars, living expenses, college, etc etc? The answer is Paycheck insurance, formally referred to as Disability Insurance / Disability Income Protection.You may get a limited amount of sick pay from your employer if you're salaried, but it won't last long. There's always workers' compensation, but that only covers you for work-related injuries - a very small percentage of causes of disability. But if you are self employed or an independent contractor, you most likely don't qualify for either plan.
But if you have Disability Income protection it will pay between 55 to 70 per cent of all income / earnings allowing you to maintain a reasonable lifestyle and maintain payments of your important obligations, such as your home mortgage. These policies are not inexpensive, averaging approximately 2% +/- of your annual income. You can different benefit periods or options that may reduce your premiums. Make sure you buy this valuable protection today, locking in your premium payments, because the older you become the more expensive this policy will be to purchase in the future.
Look for a non cancel-able and guaranteed renewable contract. If you are a skilled professional you should also look for a plan that has an "own occupation" provision, meaning that if you can not be a lawyer or surgeon, you can become a teacher or family doctor while continuing to receive your disability income payments. Quotebroker offers a number of different plans from major insurance companies. For more information: Disability Insurance.
If you think it's too expensive - what's more important.... your car or your income to age 65? Most likely your disability policy payments will be much less than the car you drive today.
How will you pay the bills? The mortgage payments, cars, living expenses, college, etc etc? The answer is Paycheck insurance, formally referred to as Disability Insurance / Disability Income Protection.You may get a limited amount of sick pay from your employer if you're salaried, but it won't last long. There's always workers' compensation, but that only covers you for work-related injuries - a very small percentage of causes of disability. But if you are self employed or an independent contractor, you most likely don't qualify for either plan.
But if you have Disability Income protection it will pay between 55 to 70 per cent of all income / earnings allowing you to maintain a reasonable lifestyle and maintain payments of your important obligations, such as your home mortgage. These policies are not inexpensive, averaging approximately 2% +/- of your annual income. You can different benefit periods or options that may reduce your premiums. Make sure you buy this valuable protection today, locking in your premium payments, because the older you become the more expensive this policy will be to purchase in the future.
Look for a non cancel-able and guaranteed renewable contract. If you are a skilled professional you should also look for a plan that has an "own occupation" provision, meaning that if you can not be a lawyer or surgeon, you can become a teacher or family doctor while continuing to receive your disability income payments. Quotebroker offers a number of different plans from major insurance companies. For more information: Disability Insurance.
If you think it's too expensive - what's more important.... your car or your income to age 65? Most likely your disability policy payments will be much less than the car you drive today.
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