Disability Insurance

You are human and fragile. It can be difficult to picture yourself unable to perform and do everything that you currently do.  That fact is that a disability can happen at any time, to anyone; without disability insurance, you could potentially face huge financial losses. All income earners need to protect themselves and their families from the ruinous fiscal consequences of a debilitating injury or illness. 

Disability Insurance allows people to not only continue nurturing your children’s quality education and put three well-balanced meals on the table, but to continue living in the manner to which you have become accustomed. If you are properly insured, you can continue living comfortably in the face of a temporary or permanent disability.

Often called DI or disability income insurance, or income protection is a form of insurance that insures the beneficiary's earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work. For example, the worker may suffer from an inability to maintain composure in the case of psychological disorders or an injury, illness or condition that causes physical impairment or incapacity to work. It encompasses paid sick leave, short-term disability benefits (STD), and long-term disability benefits (LTD).  Statistics show that in the US a disabling accident occurs, on average, once every few seconds.  In fact, a significantly large number of Americans are currently living with a disability and 1 out of every 4 persons in the US workforce will suffer a disabling injury before retirement

High Limit Disability Insurance

For high-income earners, trying to get by on traditional Income Replacement Disability insurance could result in huge financial losses.

Traditional Disability Insurance companies generally offer the most comprehensive policy wording but there is one structural deficiency: The traditional carriers have “issue limits” that will not allow a high-earner to purchase enough Disability Insurance to replace their income and protect their lifestyle. The answer is using High-Limit Disability Insurance from a specialized insurance provider.

Disability insurance is an integral part of a secure financial plan, especially for highly compensated executives. This plan allows executives to maintain their standard of living in the event that an injury or illness leaves them unable to work. Disability insurance is invaluable for any person in any occupation; a plan like this one will ensure clients’ can continue their standard of living despite a debilitating accident or sickness.

The High Limit Disability Insurance plan utilizes the strengths of the Lloyd’s of London.

Specialized Supplemental Coverage

As well as financial restrictions placed by traditional Disability Insurance companies, some people are deemed uninsurable because of their age, their employment in a risky occupation, the location of their workplace, their medical history, “risky” avocations, or frequent international travel.

There is Disability Insurance available for most working people, who are not satisfied with coverage from the traditional market. Plans can be custom designed for clients from most industries and financial backgrounds.

Business Overhead Disability Insurance

When a self-employed person is unable to work due to a disability, his or her personal life will not be the only victim. Personal Income Replacement Disability plans keep wage earners and their families living comfortably, but what will happen to the business while the owner is unable to work? Companies need cash flow to pay the rent, keep the lights on, fulfill monthly paychecks and take care of other necessities. If a disability keeps the owner or professional from working, his or her company could be forced to close for a short time, or even permanently. Businesses that close temporarily, even for a few months, often cannot regain their footing. Customers and clients can drift away, and good staff may look seriously at job alternatives. High Limit Business Overhead Disability Insurance will keep a disabled person’s business functioning smoothly until he or she returns to work.

Buy-Sell Disability Insurance

Businesses with more than one owner often draw up a buy-out plan should one of the owners die. In the event of an unexpected death, the buy/sell plan ensures the stability of the company. Unfortunately, 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.

Buy-In Disability Insurance

When an individual is invited to become a partner in a professional practice or business, there is usually a period that involves the buying-in. During this period the deal is riding on the fact that the individual becoming a partner has the finances to buy into the company. A disability could really throw a wrench in the plan.

Should the person becoming a partner become disabled during the buy-in period, there could be significant problems with the completion of the deal. Without the ability to continue working, the disabled person might not be able to afford to buy into the company. Unfortunately, because the disabled is not a full partner at the company, a traditional Buy Sell Disability Insurance plan will not cover him or her. In this type of situation, a specialized High Limit Disability Buy-In Insurance policy would cover the Buy-In agreement.

Key Person Disability Insurance

Most companies have key people who are essential to the success of the business. Whether these people are valuable because of their expertise, power, innovativeness, or information, losing them (even temporarily) could be incredibly detrimental to a company. Key Person Disability Insurance provides crucial benefits to protect the company financially in the event that a key employee can no longer work due to a disability. Key Person coverage provides cash flow to help companies move forward and maintain a profit if a key employee becomes disabled. In this situation, High Limit Disability Insurance is invaluable, because traditional disability companies only offer Key Person coverage in limited amounts.

Pension Completion Disability Insurance

If a disability, from an accident or illness, strikes while one is building a pension plan, the results can be catastrophic. Suddenly, with no income, or living on Disability Insurance proceeds, the disabled person can no longer contribute to his or her retirement plan. A disability does not just create immediate financial troubles; the future becomes incredibly uncertain as well. Will a disability put off your retirement? Will a disability cut your retirement income in half? Pension Completion Disability Insurance will ease these concerns, so you can stop worrying about the stability of your future and focus on the present. Similarly, if you do become disabled, with proper disability insurance plans in place, you can concentrate on getting healthy again, without letting fears and concerns about your income during retirement affect your judgment about the proper path of treatment and recovery.

Contract Guarantee Disability Insurance

Signing a contract obligates both parties to stand by their initial agreement. Unfortunately, unforeseen circumstances can inhibit people and companies from carrying out the terms of the contract. One party’s inability to fulfill the terms of the contract could mean the other party takes a huge financial loss.

Spousal and Family Support Disability Insurance

Often, a divorced income-earner will have financial obligations to his or her ex-spouse and children. Many separation agreements have terms that are so onerous to an income-earner that, if disabled, all of the person’s disability insurance will be going to another household, leaving no way for the disabled person to support themselves. Traditional disability insurance issue limits do not take into consideration this special set of circumstances.

Loan Indemnification Disability Insurance

Often, when a bank lends money to a business, they will require the borrowers to provide life insurance to cover the outstanding loan amount. This is sensible, however, there are significantly more disabilities than deaths. The banks should be asking for disability insurance to cover the payments.

Alternatively, if you are a borrower, because of probabilities, you should be more concerned about the impact of disability than death. If a business owner is disabled, aside from trying to recover their health, there are major concerns for the business. To know that the bank will be satisfied removes what will be one of the greatest areas of concern for a disabled business owner.

Severance Agreement Disability Insurance

An interesting problem develops when the termination of an employee involves a severance package and part of that package is the requirement to continue benefits such as Long-Term Disability Insurance. Under most Group LTD contracts, the terminated employee cannot be kept on the group LTD plan. Unfortunately, finding traditional individual disability insurance is not an available option since the person is currently unemployed.

Be sure to ask your D'Arcy Insurance Agent about our full line of Disability Insurance coverage.