Key Points of Income Protection

In today’s world, business owners have more on their plates than ever before. Balancing customer, supplier, and employee demands with personal and family commitments can be a challenge. As long as you have the ability to go into work each day and earn a living, you are able to provide for your employees and family. However, what would happen if you became sick or injured and could no longer work? How would you ensure a continued stream of income and support your family while keeping your business running?

Without a plan to protect your income, you may be putting the future of your business and family in jeopardy. While May is known for warmer weather and Mother’s Day, it is also Disability Insurance Awareness Month. A disability insurance policy can offer peace of mind by providing monthly income if you are unable to work due to an injury or illness. When choosing a policy to protect your income, there are several key characteristics to consider.

One of the most important features of a disability policy is the definition of disability. Some products are based on the individual’s inability to work at their specific occupation, and some are based on the inability to work at any occupation for which the individual is reasonably qualified. Generally, a policy that bases the disability benefit on whether you can perform
your regular “own” occupation is preferable to one that uses an “any” occupation definition. Here are some other key things
to look for:

  • Renewability — Can the insurance company change the premium or benefits after the policy is in force? A “non-cancelable” policy guarantees the insurer cannot modify the policy in the future.
  • Rehabilitation Benefit — Occupational training may be provided to help an insured return to work in their own occupation or one for which they are reasonably suited.
  • Partial Disability — What happens if the insured can still work part time? The ability to work limited hours and still receive a benefit can be desirable. 
  • Additional Benefits — Disability policies can also offer custom riders that can expand or improve the existing benefits.

Help protect your most valuable asset — the ability to earn an income. Contact your local Federated representative to discuss ways Federated can help you address the catastrophic impact of a disability.

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Key Points of Income Protection (pdf)

This article is for general information and risk prevention recommendations only and should not be considered legal, coverage, financial, tax, or medical advice. The information may be subject to regulations and restrictions in your state. There is no guarantee following these recommendations will help reduce or eliminate losses. The information is accurate as of its publication date and is subject to change. Qualified counsel should be sought regarding questions specific to your circumstances. All rights reserved.

Published Date:May 18, 2020

Categories: It's Your Life