Read the Vistaplan Financial Group blog: Universal Life Insurance, Term Insurance, Disability Insurance, Critical Illness Insurance, Super Visa Insurance.
Posted: 3 Feb '20
There is nothing more exciting than being a business owner or starting your professional practice. But with that responsibility comes a variety of concerns. What will you do if you fall prey to an unexpected illness or accident that leaves you unable to work for months or even long? This is where disability insurance becomes the most valuable type of insurance you could ever purchase.
Disability insurance is a contract that states it will pay you a certain amount of monthly income when you become disabled by sickness or injury and satisfy the definition in our contract. The better contracts start to pay you some income after an illness or injury whether you are unable to work at all or if you can still work but on a part time basis. (It is very important to ask if residual disability is included in the contract). The policy then pays you an income, either total disability benefits or partial disability benefits until you return to work or start to earn more than 80% of your pre-disability income.
Disability insurance offers you financial security. It helps you pay bills and take care of your family while you’re out of work. It can keep your family stable during these difficult times. Disability insurance benefits in most cases are tax free income. Remember do not use your disability insurance benefits to pay your business or office expenses, there is other insurance for business expenses that is much cheaper and is a deducible business expense
Companies sometimes offer their employees disability coverage under a group plan. This is usually with larger companies. As the company owner or professional the group disability coverage usually has a maximum coverage limit. This maximum is usually well below what you qualify for in terms of total coverage. Therefore, you can purchase a private disability insurance plan as a top up. Working with an insurance professional, they can help you calculate the amount of private coverage you qualify for without being over insured
With all private disability contracts there 3 or 4 add on options you might consider. These options might include, a cost of living benefits, guaranteed additional insurance options, residual or partial disability extension and return of premiums features. These options will increase your premiums. Before you decide on these options make sure you work with a knowledgeable agent, so these options are fully explained to you. That way you can decide if these have value for your situation or not.
At Vistaplan Financial Group we treat disability insurance as one of the most valuable insurance plans you can ever own. During disabilities bills continue to come in. Think about it, if your income stopped today how long would your saving account last before you were in real trouble financially? Business owners and professionals should not make the mistake of being without disability insurance.
Are you a business owner looking for disability insurance in Edmonton? Contact us to learn moreREQUEST YOUR INSURANCE QUOTE
David is a well-respected insurance advisor with over 30 years of experience helping healthcare professionals, business owners, and their families secure their financial futures. He takes the time to make certain his clients understand the life, disability, and health insurance products they are purchasing, so they can make the right choices for their budgets, plans, and futures. CONNECT WITH ME ON LINKEDIN