Disability Insurance
Protect Your Ability to Earn Your Living
Your Income May Be Your Most Valuable Asset. Protect It.
Your paycheck supports your lifestyle, housing, savings, retirement plan and the people who depend on you. A serious illness or injury can interrupt that income long before retirement.
Disability income insurance is designed to replace a portion of earned income when a qualifying disability prevents you from working under the terms of the policy.
If Your Paycheck Stopped Tomorrow, What Would Keep Arriving?
The mortgage or rent. Insurance premiums. Food. Utilities. Tuition. Retirement contributions. Business obligations. Everyday living expenses.
Disability insurance addresses a risk that can be easy to overlook: your expenses may continue even when your ability to earn an income does not.
Protect Your Income
Coverage can replace a portion of eligible earned income when a qualifying disability prevents you from working.
Protect Your Lifestyle
Income protection can help maintain the financial obligations your paycheck was designed to support.
Protect the Long-Term Plan
A prolonged loss of income can affect savings, retirement funding and other long-term financial objectives.
Your Income Is an Asset.
People routinely insure homes, automobiles and other property. But for someone who expects to work for many more years, future earnings can represent an enormous financial resource.
Disability income planning asks a straightforward question: what happens to the financial plan if those earnings suddenly stop?
Estimate the Income You Still Have Left to Earn
This simple calculator illustrates why income protection can matter. It is not an insurance quote or a calculation of available disability benefits.
Your Remaining Income Exposure
This is a simple illustration using today's annual income multiplied by the number of working years entered. It does not account for raises, inflation, taxes, investment growth or changes in employment.
Disability insurance generally does not replace 100% of earnings. Available benefits depend on income, occupation, existing coverage, underwriting and the specific policy.
Short-Term vs. Long-Term Disability Insurance
Short-Term Disability
Short-term disability coverage is generally designed for temporary qualifying disabilities and typically provides benefits for a relatively limited period.
Long-Term Disability
Long-term disability insurance is designed for more extended qualifying disabilities and may provide benefits for substantially longer periods, depending on the contract.
The Definition of Disability Matters.
Two policies can both be called disability insurance while providing materially different protection.
One of the most important provisions is how the contract defines disability. Depending on the policy, eligibility may be based on the ability to perform duties of your own occupation, another occupation, or other contractual standards.
Definitions, limitations and benefit provisions should be reviewed carefully before coverage is selected.
Why Disability Planning Can Be Especially Important for High Earners
Professionals, executives and business owners may have substantial income supporting equally substantial financial commitments.
Employer Coverage May Have Limits
Group disability benefits can be valuable, but benefit caps and plan provisions may leave higher earners with a significant protection gap.
Your Occupation Matters
The duties of a physician, attorney, executive, salesperson, contractor or business owner can create very different disability insurance considerations.
Income Can Be Complex
Salary, bonuses, commissions, business income and other compensation may be treated differently when determining available coverage.
Have Disability Insurance Through Work? Start There.
Employer-provided disability coverage may already provide an important foundation. The next step is understanding exactly what that plan covers.
Review the monthly benefit, benefit percentage, maximum benefit, waiting period, benefit period, definition of disability, portability and other applicable provisions.
The objective is not automatically to replace employer coverage. It is to identify whether a meaningful income-protection gap remains.
Policy Features Worth Understanding
Elimination Period
The period a qualifying disability generally must continue before benefits become payable under the policy.
Benefit Period
The maximum period benefits may be payable for a qualifying claim, subject to the contract.
Monthly Benefit
The amount of disability income benefit available under the policy when contractual requirements are satisfied.
Residual or Partial Benefits
Certain policies may provide benefits when a qualifying disability reduces earnings without completely eliminating the ability to work.
Future Purchase Options
Certain policies may offer provisions allowing eligible insureds to apply for additional coverage as income increases, subject to the contract.
Other Riders & Provisions
Available riders and policy provisions vary by insurer and may materially affect benefits, premiums and protection.
Business Owners May Have More Than One Disability Risk.
A business owner may need to consider both personal income and the financial obligations of the business.
Personal Income Protection
Individual disability income insurance may help address the owner's personal income needs after a qualifying disability.
Business Obligations
Depending on the circumstances, separate planning may be appropriate for business overhead, key-person exposure, ownership transitions or other business-related disability risks.
Already Have Disability Insurance? Review It Before Changing It.
An existing policy may contain definitions, pricing, guarantees or provisions that may be difficult or impossible to reproduce with a new contract.
Before replacing or surrendering existing coverage, compare the old and proposed policies carefully and consider changes in age, health, occupation, underwriting and contractual benefits.
Questions Worth Asking Before You Buy
- How does the policy define disability?
- What monthly benefit could I qualify for?
- How long is the elimination period?
- How long can benefits potentially continue?
- How are partial or residual disabilities handled?
- How does my occupation affect the coverage?
- How does my employer-sponsored coverage fit into the calculation?
- Can coverage potentially increase as my income grows?
- What exclusions or limitations apply?
- What happens if I change occupations or employers?
Protect the Income That Makes the Rest of Your Financial Plan Possible.
TUSK can help you review existing disability coverage, identify potential income-protection gaps and evaluate available strategies based on your occupation, income and objectives.
