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What is Disability Insurance?

Types of Disability Insurance

Key Features of Disability Insurance

Who Is Disability Insurance Best For

How Disability Insurance Works: Real Life Scenario

Keys To Remember

What is Disability Insurance?

Disability Insurance in simple terms is insurance that ensures you will have income coming in should you get hurt or sick on or off the job and cannot work for a period of time. This income can be used however you choose to use it.


Types of Disability Insurance

Short Term Disability Insurance

Short term disability insurance is disability insurance that lasts less than one year, typically between three to six months. There is a shorter waiting period for benefits to kick in, usually up to 30 days but it's common for recipients to choose 14 day waiting periods. As with many insurance policies, group plans come at a cheaper premium but individual policies are priced to be appealing and affordable for employees or self employed individuals whose don't have the group plan option. 

Long Term Disability Insurance

 Long term disability insurance is disability insurance that can last anywhere from 24 months to 36 months, to age 65, or for life, depending on which disability policy you choose. Long term disability policies have longer waiting periods and these periods vary by policy and carrier. It's common to wait 90 days for long term disability insurance to kick in. Also, because these benefits are designed to last longer, premiums usually cost more.

Who Is Disability Insurance Best For?

Short Term Disability Insurance

Long Term Disability Insurance

Key Features of Disability Insurance

Policy in Action: Sample Case Studies

Case Study: Mark Wants Permanent Coverage, But Doesn't Have the Budget for Whole Life Insurance

Lisa is a hard working single parent who is the primary wage earner for her household of 3, which includes Lisa and her two sons. Lisa makes a decent living, but if she were to miss a month or so of work due to sickness or an off the job injury, lack of a paycheck would set her into a financial 

Problem: Mark needs permanent life insurance coverage but can't comfortably afford coverage in the form of a Whole Life insurance policy. He can't put the purchase off any longer as he is afraid that if something were to happen to him prematurely, his children will suffer financial hardship, since he is the primary wage earner for them. 


Suggested Solution: Instead of purchasing a Whole Life policy he cannot comfortably afford, and running the risk of having to cancel it and re-qualify for coverage at a later date, Mark can purchase a Guaranteed Universal Life insurance policy. He will lose the cash accumulation of a Whole Life policy, but retain the permanency he desires, along with some great Living Benefits to add additional value and protection to his policy. Because Mark is not concerned with borrowing money from his policy, a benefit of the cash accumulation built into Whole Life policies, he can now purchase permanent insurance coverage, at a rate he can comfortably afford, giving him the peace of mind of having adequate financial protection in place for his children in the event of an untimely demise.


What to Remember About Disability Insurance

A Guaranteed Universal Life Insurance policy is used for insureds who need permanent coverage, but can't comfortably afford a Whole Life policy. It's also for those who can comfortably afford a Whole Life policy, but don't necessarily need the built in Cash Accumulation component of a Whole Life policy that adds to the cost of a Whole Life policy.

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