If you have a piece of equipment that produces a valuable product that you market at a good profit, would you take care of it? Would you perform routine maintenance, protect it from harmful weather and accidents if possible? Would you buy insurance for it? No doubt you would.
The same can be said for your ability to earn an income each month. You are that valuable machine.
Disability income insurance is one of the most overlooked products in the entire insurance business. National surveys show that in companies of less than 50 employees, fewer than 15 percent of the workers have either short- or long-term disability coverage. This puts many people less than three paychecks away from financial disaster. MDA Insurance can show you how to easily fill that gap and keep the financial wolves away from your door if a disability occurs.
Disability coverage can be purchased individually or it can be set-up as an office group.
Two important factors to consider when purchasing coverage are the policy elimination period and benefit period. Each of these factors will have a direct impact on the cost of coverage.
Elimination periods identify how long after the disability occurs that benefits will begin, such as 30, 60 or 90 days, for example. The benefit periods usually last two years, five years, to age 65, or lifetime.
Types of Individual Coverage
Non-cancelable – This type of coverage provides the most guarantees because the company cannot cancel, change or raise the premium as long as the insured pays the premium.
Guaranteed Renewable – This type of contract cannot have the coverage changed or the policy cancelled, as long as premiums are paid. The company, however, can change the premium as long as the premiums are changed for the entire class of policies or policy type.
Disability Coverage for Loans (Reducing Term Disability) – This type of contract is designed specifically for covering business loans in the event of disability. The coverage period is tied to the schedule of outstanding loan payments. It has level premiums and a choice of elimination periods and benefits are paid regardless of other personal disability coverage.