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High Income Protection Insurance

High Income Protection InsuranceIncome protection insurance or disability insurance is one of the most important layers of protection that you can add to your risk management strategy. We can help you design and implement a plan to protect your business, family, or both.

A disability can happen to anyone, at any time.

Losing your monthly income can have devastating results. This is especially true for high-income individuals or those that are self-employed.

Disability insurance, sometimes known as income protection insurance, will guard against the depletion of your savings or the selling off of assets to meet your monthly expenses during your rehabilitation period. Most financial advisers agree that 65% of someone’s current monthly income is needed to continue in their current lifestyle.

Aren’t most people covered by a plan that is provided by their employer?

Yes, however,  for those with higher incomes of $150,000 or more, there are some shortfalls that need to be considered:

  • Most plans cap out at a percentage amount or dollar amount. For higher income individuals, this leaves a financial gap that needs to be protected.
  • Employer paid plans will make the benefit amount taxable income, thus further reducing your take home benefit
  • Most employer-paid plans do not include bonuses or commissions, thus further reducing your monthly benefit. You may make $200,000 a year with bonus and commissions but your salary is $100,000 a year, your employer plan will be based on that amount and not the $200,000.

Individual Disability Insurance

So, you either have group coverage that isn’t addressing your current needs or you don’t have any coverage at all.

This is where individual disability insurance coverage can greatly assist your problem.

Individual disability insurance is simply private coverage that you purchase directly from an insurance company as opposed to being offered it through your work or an association,

Individual coverage has a few distinct advantages.  For one, it is portable.  Meaning that if you leave your job/profession, you can take it with you.

Group insurance will sometimes offer this benefit, however, it will normally not.  If you leave your job, you likely will lose your disability coverage.

The other main issue with group insurance is that it won’t cover partial disabilities.  Some of the largest group/association plans in the country, such as the American Medical Association, require total disability prior to making a claim.

While this may be acceptable for some conditions, in many circumstances this will result in the denial of a claim whereas an individual policy would begin to pay.

High-Income Professionals

If you make more than 370k annually, a typical policy is not going to be acceptable.  Most disability insurance policies, sometimes referred to as income protection insurance, will not cover more than 20k per month.

Most people don’t need more than basic coverage but you’re not most people if you’re on this website. You’re a high-income professional and need more than what a traditional plan will offer.

For this reason, we offer supplemental/excess disability insurance for high-income individuals.

Self-employed Income Protection Insurance, Have You Been Declined?

Most traditional carriers will decline the self-employed for a number of reasons. Examples can be: working from home, part-time hours, fluctuating income/capital gains income, high-risk work, high-risk hobbies or the big one, health. I encourage you to get as much permanent disability insurance as possible and then we can supplement that plan to meet any coverage gap.

I can, of course, assist you in getting standard DI plans through a traditional carrier.

What type of plans are available?

Personal and business plans along with speciality plans such as:

Personal Plans

Traditional disability insurance

Personal self-employed/unusual occupation

Professional athletes

Contract guarantees

Loan indemnification

Loss of future income

Take The Case of Jake Butt

Jake Butt was drafted in 2017 by the Denver Broncos as a tight end.  At one time in his collegiate career, he was named as tight end of the year (in 2015) and won an award as the best tight end in football.

He held that title a second year in a row (in 2016) and was poised to be a top pick in the 2017 draft. That dream ended when he suffered a torn ACL in the 2016 Orange Bowl.

This story may sound tragic had Jake Butt not had a contigency plan.  First of all, he had purchased a 2 million dollar disability insurance policy, protecting him should he never be able to play football again.  

More importantly, he had added a loss of future income/value policy to his disability policy.  This rider cost $25,000 and while that might sound like a substanial sum,  it paid off in spades.

Because of his injury, Jake Butt fell several rounds in the draft and multiple tight ends were taken ahead of him.  But with each passing name, Jake Butt collected $10,000 and by the time the dust was settled, and the Denver Broncos called his name, Jake Butt had collected $543,000 on his loss of value rider.

We help people like Jake protect their lifetime earnings.  You can contact us today to do the same.

Business Uses

Business group plans for high-income employees

Guaranteed standard issue policies

Business overhead expense (BOE)

Take the case of Jim Rollins

Jim has a trucking company.  Actually, Jim has himself and 2 employees who drive truck for him.  

As a small business owner, Jim recognizes the need to have proprer insurance in place should he have a health issue.  Making 400k+ for several years as an owner/operator, Jim has ample personal savings to whether most financial issues.

That all being said, he has a lot of money owed on his three trucks, which would be difficult to pay for should he become disabled. 

Business overhead expense coverage can step in to help offset these costs should Jim become disabled and unable to perform the normal duties of his profession as an owner/operator.

BOE (business overhead expense) is there to help offset business costs should he become unable to perform his normal job duties.

Buy/Sell disability

Disability buy-out

Contract guarantee

Loan indemnification

Key person

Pension completion

Salary continuation

Other plans that we offer are term life insurance and no medical exam life insurance plans. All of these plans can be used for personal use, buy/sell agreements, or key-person needs to name just a few.

Summary

High-limit disability insurance plans can be customized to meet your needs. I fully understand and realize that no two situations or needs are the same.

Please contact me today for a confidential discussion of your needs. We provide expert, unbiased advice on disability insurance plans. My toll-free number is 888-636-2310.

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