DISABILITY INSURANCE

Disability insurance is used for the purpose of covering loss of income due to illness or accident. Disability insurance ensures you can continue to meet your financial commitments during your recovery by paying out a lumpsum to help cover your expenses. This insurance tool provides peace of mind, protects your income, and is customized to the amount of your needs.

There are three main types of disability insurance:

1. Income Replacement Insurance.

Income replacement insurance is what is termed as an “indemnity” type of insurance that pays you a set monthly income for up to age 65 if you are disabled.

2. Business Overhead Expense Insurance.

Business overhead expense insurance is a “reimbursement” type of insurance that pays a monthly benefit to reimburse you for business expenses that you incurred during a month where you are disabled.

3. Disability Buy Sell Insurance.

Disability buy sell insurance is an “indemnity” type of insurance that pays out a set amount after the waiting period to a business or shareholder to facilitate the buyout of the disabled shareholder’s or partner’s interests in a business.