Disability Insurance

Life insurance

Disability insurance

The duties of a breadwinner are twofold:

1. Bring home the bacon

2. Keep bringing home the bacon

You probably spent a lot of time learning and developing skills in order to land your dream job. If you lose the ability to work in your chosen industry due to an illness or injury, you would be able to receive a disability benefit from your disability policies.

The importance of protecting your income stream

Short and long term disability, including lump sum policies.

Individual policies, group policies, employer paid vs self paid and the tax consequences of each one.

How will my rate be determined? The cost of this policy is determined primarily by the job classification - which is based on the type of labor that you perform and the likelihood that an injury will prevent you from being able to work in your industry. It is also heavily impacted by the amount of income that you are insuring for, the length of the benefit period, and waiting period. Disability policies almost always have a period of time following the disablement before the benefit starts to pay. The benefit period is how long the benefits last. Sometimes it is a lump sum benefit payable all at once, or it may provide for a percentage of lost income (for instance, if you have an income of $100,000 and the policy indicates that it covers 60% of income to age 65 with a 90 day waiting period, if you are injured at age 50 and are deemed disabled, your benefits would begin after the 90th day following the injury and pay 60% of the $100,000 (this will be split up into payments one or more times per month) until you recover from the injury or reach age 65.) Gender is also a determining factor in calculating the premium for a disability policy.