Florida Disability Insurance

Life / Term Life

 

Often called DI or disability income insurance, it is a form of insurance that insures the beneficiary's earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work. For example, the inability to focus or maintain composure as with psychological disorders or an injury, illness or condition that causes physical impairment or incapacity to work. It encompasses paid sick leave, short-term disability benefits, and long-term disability benefits.

Statistics show that in the United States, a disabling accident occurs on average once every second. In fact, nearly 18.5% of Americans are currently living with a disability, and 1 out of every 4 individuals in the US workforce will suffer a disabling injury before retirement. Traditional disability carriers have limitations on the monthly benefits, which limit benefits for high income earners. Benefits typically cap at $20,000-$25,000 of monthly benefits.

INDIVIDUAL DISABILITY INSURANCE

Those whose employers do not provide benefits, and self-employed individuals who desire disability coverage, may purchase policies. Premiums and available benefits for individual coverage vary considerably between companies, occupations, states, and countries. In general, premiums are higher for policies that provide more monthly benefits, offer benefits for longer periods of time, and start payments of benefits more quickly following a disability claim. Premiums also tend to be higher for policies that define disability in broader terms, meaning the policy would pay benefits in a wider variety of circumstances. Web-based disability insurance calculators assist in determining the disability insurance needed.

HIGH-LIMITED DISABILITY INSURANCE 

It is designed to keep individual disability benefits at 65% of income regardless of income level. Coverage is typically issued supplemental to standard coverage. With high-limit disability insurance, benefits can be anywhere from an additional $2,000 to $100,000 per month.

KEY-PERSON DISABILITY INSURANCE 

It provides benefits to protect a company from financial hardship that may result from the loss of a key employee due to disability. The company can use the benefits to hire a temporary employee should the disabled employee's disability appear to be short-term. In the case of permanent disability, benefits are used to help defray costs related to hiring a replacement, including recruitment, training, start-up, loss in revenue and unfunded salary continuation costs.

BUSINESS OVERHEAD EXPENSE DISABILITY INSURANCE  

Business Overhead Expense (BOE) coverage reimburses a business for overhead expenses should the owner experience a disability. Eligible benefits include: rent or mortgage payments, utilities, leasing costs, laundry/maintenance, accounting/billing and collection service fees, business insurance premiums, employee salaries, employee benefits, property tax, and other regular monthly expenses.

EMPLOYER-SUPPLIED DISABILITY INSURANCE  

One of the most common reasons for disability is on-the-job injury, which explains why the second largest form of disability insurance is provided by employers to cover their employees. There are several sub-types that may or may not be separate parts of the benefits package: workers' compensation and more general disability insurance policies.

OTHER

These policies offer payments to employees who are (usually temporarily, rarely permanently) unable to work because of any injury or illness, even if it is not job-related. Unlike workers' compensation, this coverage may not involve any aspect of health insurance, life insurance, or payments for pain and suffering. Similarly to most employer-supplied health insurance, these are open-market plans with the advantage of a negotiated group rate. That is, they are similar to what an individual would buy, but with a volume discount. They tend to offer basic coverage, because most employees are unwilling to pay more. Sometimes employees have the option to buy upgraded coverage.

Our licensed agents at Insurance Warehouses of America can  provide further assistance about disability insurance. They will help you understand the different types of coverages applicable based on the company you pick, but also the different choices that you can select from!

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