What Is Disability Insurance?
Disability insurance offers income protection for when an accident or illness occurs that forces you out of work. It is designed to protect you financially and provide peace of mind. There are two primary types of disability insurance — short-term disability and long-term disability. You may need a special type of disability insurance, depending on your unique situation.
Among assistance with other disability insurance products, we can help you with business overhead expense disability insurance, critical illness disability insurance, and high limit disability insurance.
- Short-Term Disability Insurance – coverage only lasts for up to a year. This covers you in the event of disability for up to 60% of your monthly income (in most cases).
- Long-Term Disability Insurance – This policy can offer coverage from two to ten years. It can cover up to 60% of your gross monthly income and only cost approximately 2% of your monthly salary (on average).
Short-term disability insurance is often offered by employers, although an individual (or group) policy may be necessary for long-term disability coverage. Below we discuss more specific types of disability insurance products that we offer here at Vector Financial Group.
About Our Disability Insurance Products
Specifically, Vector Financial Group offers business overhead expense disability insurance, critical illness disability insurance, and high limit disability insurance. We discuss the unique nature of each product below. Give us a call or send us a message for more information and for assistance customizing your policy to fit your (and your organization’s) unique needs and goals.
Business Overhead Expense Disability Insurance
Business overhead expense disability insurance (BOE disability insurance) is a way to protect your business if you are unable to work for an extended period of time due to injury or illness. The policy covers the costs associated with daily operations, such as wages, debt payments, real estate costs, and more. We highly BOE insurance for individuals who own a business that relies upon their availability.
Critical Illness Disability Insurance
Critical illness disability insurance protects the policyholder financially if they receive a diagnosis of a “critical illness.” Notably, this includes a diagnosis of heart attack, stroke, and cancer, among numerous additional potential illnesses that cause disability. Without coverage, high net worth individuals (HNWIs) could be financially vulnerable if they are diagnosed with a critical illness that is not fully covered by their primary health insurance policy. Specifically, this helps replace the lost income caused by critical illness.
High Limit Disability Insurance
High limit disability insurance is a type of disability insurance for high net-worth individuals (HNWIs) that are not fully protected with individual or group disability insurance due to strict limits. This disability insurance policy comes with much more coverage as well as a higher premium. By working with Vector Financial Group, you can feel confident that you can put in place a policy that meets your disability insurance needs and goals.
How Does Disability Insurance Work?
Every policy is unique, and it is crucial to understand the details of your policy, what is (and is not) covered, and how the claims process works. However, in general, the insurance provider starts with an assessment of your medical history, occupation, business information, and more to determine your rates and coverage options; this is known as the underwriting process. Once coverage starts, you (the policyholder) make monthly premium payments.
If you endure an injury or illness that is covered by our policy and forces you out of work for an extended amount of time (more than two weeks), then your policy should kick in and provide compensation for your covered expenses. In some cases, deductibles and limits may apply. It is important to understand your policy well to avoid any ambiguity and lack of coverage when you need it the most.
Ready To Discuss Your Disability Insurance Needs?
Your disability insurance policy needs are dependent on your situation and financial risks. A combination of disability insurance coverages is often recommended to ensure optimal protection. We can assist you with additional products as well as the ones mentioned above as well.
Here at Vector Financial Group, we can assist you with the personalization of your disability insurance policy. Whether you are a small business owner or a high-net-worth individual (or both), we can meet your precise needs and goals. If you are in need of disability insurance brokerage and planning services, then call our professionals at Vector Financial Group today.