Your earning potential is a far more valuable asset than your automobile or your home. Disability insurance is designed to protect you from the possible loss of income. 

Disability insurance is typically provided by an employer but this type of policy usually has limitations. Self employed individuals and executives can purchase customized policies to suit their needs.

Traditional disability carriers have limitations on the monthly benefits payable.Employer-provided plans typically limit monthly benefits to $3500 - $5000. However, it is possible to purchase a personally owned policy to ensure your income is fully covered.

Types of Disability Insurance

Individual Disability Insurance

Those whose employers do not provide benefits, and self-employed individuals who desire disability coverage, may purchase policies.

Premiums and available benefits for individual coverage vary considerably between companies, occupations, states and countries. In general, premiums are higher for policies that provide more monthly benefits, offer benefits for longer periods of time, and start payments of benefits more quickly following a disability claim.

Premiums also tend to be higher for policies that define disability in broader terms, meaning the policy would pay benefits in a wider variety of circumstances. Web-based disability insurance calculators assist in determining the disability insurance needed.

Key Person Disability Insurance

Key Person Disability Insurance provides benefits to protect a company from financial hardship that may result from the loss of a key employee due to disability. The company can use the benefits to hire a temporary employee should the disabled employee's disability appear to be short-term.

In the case of permanent disability, benefits are used to help defray costs related to hiring a replacement, including recruitment, training, startup, loss in revenue and unfunded salary continuation costs.

Business Overhead Insurance

Business Overhead Expense (BOE) coverage reimburses a business for overhead expenses should the owner experience a disability.

Eligible benefits include: rent or mortgage payments, utilities, leasing costs, laundry/maintenance, accounting/billing and collection service fees, business insurance premiums, employee salaries, employee benefits, property tax, and other regular monthly expenses.

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