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Becoming disabled can compromise your ability to earn an income pay bills or save for retirement. Disability insurance (DI) is designed to help you meet your income requirements so you can focus on recovering from your disability and return to your daily activities.
Disability Insurance can provide you with financial security by replacing a portion of your earnings when an accident or illness causes you to become disabled and unable to work or earn an income.
Income protection provides peace of mind and is available for, business owners, professionals, business executives, full-time, part-time or home-based workers. Whether you need to secure your main source of income or supplement the coverage from your employer we can help by providing a quality comprehensive and portable plan you can rely on throughout your working years.
Disability insurance comes in many different forms and with many different terms. The key terms in a disability insurance policy are the definition of disability, the length of time the insured must be disabled to receive payment, the amount of the payment and the length of time the payment will be made.
One of the critical terms of a disability insurance policy is the definition of disability. While the specifics vary from policy to policy, the main factor is whether someone must be disabled such that they cannot do their own job, known as Own Occupation, or whether they must be disabled such that they cannot do any job, known as Any Occ. For example, a watchmaker may not be able to do his job with an injury to his hands, but could still perform the functions of a job that uses the telephone. Which version he has determines if his injury counts as a disability.
The other major terms in a disability policy include the payment to be made in the event of a disability. Unlike other policies that pay a lump sum upon a qualifying event, most disability policies pay a recurring amount on a regular basis, typically monthly. The amount to be paid, and for how long, are variables in a disability policy. The purchaser may choose a policy that pays $4,000 per month for up to five years, for example. Some policies may pay through age 65, or for other lengths of time. In any case, a person cannot purchase disability insurance for an amount greater than his current salary. There are riders available that increase the payout amount each year to keep up with inflation and wage increases.
As long as you have an in-force policy when you become disabled, you can file a claim with the insurance company. The insurance company will review the claim to make sure that it conforms with all the terms of the policy and to prevent fraud. After a claim is approved, the insurance company will pay each month until the insured returns to work, or payments are completed based on either length of time or other terms in the policy.
When you meet with a Tri City Financial Group advisor they will run a complete analysis before they attempt to determine what type or amount of DI insurance needs you have. Knowing the proper type and amount of insurance will allow you to be properly protected during your disability period, and will ensure you and your loved ones are taken care of.
To determine the type and amount of CI insurance that’s right for you, talk to one of the financial advisor on our team.