Individual Disability Insurance
Individual Disability Income Protection is a crucial safeguard for business owners and highly recommended for executives. If you own a business, it is advisable to consider purchasing both group and individual disability insurance policies, if possible. As an executive, obtaining group coverage, if available, is important.
Unfortunately, only a limited percentage of large companies, approximately forty-three percent, offer group long-term disability insurance. The chances of obtaining long-term disability insurance are even lower for employees of small companies. Employer-provided plans are usually more cost-effective compared to individual disability policies, and often provide coverage without the need for medical qualification. However, if your employer does not offer disability insurance, or if you require additional coverage to supplement a group plan, an individual disability policy should be considered.
When evaluating group provisions, it is essential to review key details. Determine the duration of group disability insurance coverage, the benefit amount, and whether the policy covers bonus and commission income. Additionally, clarify if the coverage will continue if you leave your current employer.
A typical Individual Disability Income Protection plan typically initiates benefit payments after a waiting period of 1 to 6 months of being off work and continues to provide benefits for several years or until retirement age, depending on the policy terms and conditions.