Posted: Dec 01 '22

How a Disability Insurance Broker Can Offer You Peace of Mind

Disability insurance is a type of insurance policy that covers a portion of your income if you become incapable of working due to an injury or illness. In other words, the disability insurance company will pay you a certain percentage of your salary, which will help you cover your expenses, prepare for the unexpected and protect yourself and your loved ones. Some insurance companies pay if your injury lasts for a long time, while others will pay you in the short term, i.e., right after an incident. Speak to a Vistaplan disability insurance broker today to learn more.

Types of Disability Insurance

There are different types of disability insurance policies, categorized based on the duration it takes for the disability benefit to be reimbursed, who offers the plan, and how the insurance money will be used. In the section below, we have discussed the common types of disability insurance policies. A disability insurance broker will help you select which type of policy is right for you.

Short-term disability insurance (STD)

Short-term insurance coverage can replace up to 60% of your pre-tax income if an illness or injury prevents you from working. Most businesses automatically provide their employees with short-term disability insurance as a benefit.

Long-term disability insurance (LTD)

Long-term disability insurance, or LTD, replaces a portion of your lost earnings over an extended period. The benefit period might continue anywhere from a year until you reach retirement age, and the monthly payment can equal up to 70% of your total monthly salary. There are two types of LTD policies:

• Own-occupation disability insurance: Identifies a disability as a lack of capacity to perform your usual job. This LTD policy pays benefits even if you can perform a different job.
• Any-occupation disability insurance: This type of LTD only pays benefits if an injury or illness stops you from providing value in any occupation for which you are reasonably suited. Although this is tougher to qualify for benefits and hard to prove, it is typically less costly than own-occupation disability insurance.

Mortgage Disability Insurance

This is also referred to as mortgage payment protection insurance. LTD insurance will specifically cover your mortgage payments if you cannot work for an extended period (from a couple of months to years) due to injury/illness or total disability.

Supplemental Disability Insurance

This type of insurance bridges the financial gap between the benefits provided by employer-sponsored disability insurance and the overall cost of living while disabled. In other words, it will come in to pay the extra bills (i.e., Not covered by your employer-sponsored disability policy). A disability insurance broker would suggest this type of insurance when you have a lot going on and are sure a disability check from the employer won't make both ends meet. For instance, if you have unpaid mortgages, kids in college, pending medical bills, debts, etc., a supplemental disability check is an ideal option. 

Disability Overhead Expense Insurance

It is a type of disability insurance coverage designed specifically for business owners. If you become sick or disabled and cannot run your business, a disability insurance broker would recommend this type of policy to cover your overhead costs, such as postage, rent, employee salaries, utilities, accounting fees, payroll taxes, and more.

Why Work with a Disability Insurance Broker?

Shopping for a disability insurance policy is a daunting experience considering there are many options to choose from. Here are the main benefits of working with a disability insurance broker. 

They are experts at what they do.

Your disability insurance broker is responsible for guiding you throughout the policy selection process. They will offer you individualized assistance, ensuring that you sign up with an insurance option that is the most appropriate for your specific needs. An insurance broker also works with various products and services from several insurance partners, unlike an insurance agent whose suggestions and experiences are restricted to their own company's products. As a result, your disability insurance broker has access to a broader range of product options and customer experiences; hence you'll benefit from expert advice.  

They help you compare options and choose the best coverage.

Besides giving you the best insurance options to choose from, your disability insurance broker will go the extra mile to ensure you've understood the differences between various policies and how you'll get the best value for your money. Using an insurance broker typically results in a better experience when shopping for any insurance coverage. 

To discover the best coverage, your broker first inquires about your unique circumstances, personally and professionally. Then, to ensure that there is no overlapping, they look at your current insurance policies to determine if they already protect you. After that, they compare costs and available policy product features to try and find you the best bargain possible. Additionally, they will provide price flexibility on premiums.

You get all your questions answered.

Your disability insurance broker will assist you when it's time to purchase your disability insurance. They work with you to identify your insurance requirements and address any queries you may have. You can trust that your broker will choose the best coverage at the most affordable price since they work for you, not insurance companies.

They make the claim process move faster.

An experienced, knowledgeable, and licensed insurance broker will support you throughout the claims process. They will be available to respond to any inquiries you may have and, more significantly, act as your champion to ensure the settlement you receive is reasonable and swiftly paid out.

Benefits of Having a Disability Insurance Policy

The main advantage of disability insurance coverage is the ability to continue earning money even if you cannot work. Other added advantages to having disability insurance coverage include the following:

• It provides protection. Disability insurance coverage does reduce the impact of loss that a person experiences in case one is involved in an injury or illness that might prevent them from working. In times of financial hardship, it offers monetary compensation. It not only shields the insured from financial difficulties but also aids in reducing the psychological anguish that follows afterward. 
• It provides certainty. The policyholders are given a sense of security by their insurance coverage. The insured are willing to pay a small portion of their income for this assurance that will be helpful in the future.

For those that are self employed or working on contract, disability insurance might be the most valuable type of insurance your can own because after your health, your income will determine your family’s future. 

Plan Your Future Today!

Like any insurance policy, disability insurance is essential for everyone who receives a paycheck. If sudden illness or injury will prevent you from working and negatively impact your income, a disability insurance plan is a worthwhile policy you should prioritize. Seek professional guidance from an experienced disability insurance broker at Vistaplan today.

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About the Author - David Motkoski

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