Disability Income Insurance
If you had a money machine in your basement
and it printed off $10,000 per month, would you insure it?
Most insurance brokers do not specialize in disability insurance planning and are therefore not as competent as they should be when it comes to structuring a comprehensive disability insurance policy.
Why do you need disability insurance?
Your greatest asset is your health and your ability to earn income. If you were unable to earn your income because of an injury or sickness, your lifestyle would be drastically effected over the long term.
Disability Insurance provides you with a non-taxable monthly benefit that allows you to maintain your lifestyle during a period of injury or sickness that prevents you from performing the important duties of your occupation.
If you earn $100,000 annually and you are 35 years of age, your potential earnings to age 65 are $3,000,000, provided you maintain your health and your ability to work. Note that this calculation does not account for any increases in income or cost of living adjustments. $3,000,000 is probably your greatest asset. Morgan Wealth and Financial Services can help you ensure that it is properly protected.
Morgan Wealth and Financial Services offers only the best disability insurance contracts with coverage tailored to meet your individual needs. We offer several options for you to consider in your disability policy, including an own occupation definition of disability, partial definitions of disability, future insurability option, and an inflation protection feature. For medical professionals, we offer HIV and Hepatitis B and C coverage.
We work with our clients to determine How Much they need, How Soon they need it and How Long they would like the benefits to last? We then determine the best policy that the marketplace has to offer at the most competitive price.
Features of a disability insurance plan
Definition of Total Disability:
Own occupation is the most comprehensive definition for total disability. It states that if you are unable to perform the important duties of your occupation due to injury or sickness and are under the care of a physician, you will receive full disability benefits. This definition allows you to work at another occupation and still collect total benefits from your disability insurance contract.
This definition is very important for specialized professionals and inviduals such as dentist or surgeons who work daily and rely on the use of their hands. If something happened to their hands, this would in most cases trigger a “total disability” claim. That same person may still be able to work part-time teaching or consulting in their chosen career paths. For most other professionals and individuals, it is important to have a regular occupation definition coupled with strong partial & residual benefits since many claims will not trigger total disability for the entirety of a claim.
Regular occupation is also a comprehensive definition of disability. It states that if you are unable to perform the important duties of your occupation due to injury or sickness, you are not engaged in another gainful occupation, and are under the care of a physician, you will receive full disability benefits. The difference with this definition is that once you work at another occupation, you are no longer eligible to collect total disability benefits from your contract. A properly structured contract through Morgan Wealth and Financial Services will provide you with partial benefits if you worked at another job and had a reduction in income (see Residual Disability benefits below).
Partial and Residual Definition of Disability:
Partial Disability pays you 50% of your Total Disability benefit when you have a reduced ability to work due to injury or sickness. You qualify for this benefit when you are not Totally Disabled, and your injury or sickness prevents you from performing one or more of the important duties of your occupation or when you can only perform your duties one half of the time that was normally required.
Residual Disability pays you based on your loss of earnings due to injury or sickness. You qualify for this benefit when you are not Totally Disabled and your injury or sickness causes you to experience a loss of earnings. The benefit payment typically pays you the proportionate benefit related directly to your percentage loss of income. An example would be that if your earnings were reduced by 60%, then your disability benefit would be 60% of your Total Disability benefit.
Presumptive Definition of Disability:
This benefit is payable if you have any of the following conditions:
- Loss of speech
- Loss of hearing in both ears
- Loss of sight in both eyes
- Loss of use of two or more of your limbs
It pays you 100% of your Total Disability benefit for the entire length of your benefit period (usually to age 65) regardless of whether or not you continue to work.
Additional Features – Riders:
The cost of living adjustment (COLA) protects you from inflation while on a disability claim by ensuring that your benefit is adjusted annually to reflect changes in the consumer price index.
A future income option (FIO) allows you to increase your monthly disability benefit on the anniversary date of your policy without medical evidence.
You can now add lifetime benefits and a return of premium option on your disability insurance. The lifetime benefits rider provides you an income for life by paying a monthly benefit for life while you remain totally disabled. Total disability must begin prior to age 65. The return of premium rider entitles you to receive up to 50% of your total premiums paid every 7 years should you not make a disability claim on your policy. If you wish to add these options to your policy, please contact us.
Insurance products are provided through PPI Solutions.