Disability Insurance:
Owning Your Own Policy
: : Roland A. Vitanza, J.D.
Specialist in Life, Disability and Long Term Care Insurance
631.923.1595 ext. 342
G.R. Reid Consulting Services, LLC
Specialist in Life, Disability and Long Term Care Insurance
631.923.1595 ext. 342
G.R. Reid Consulting Services, LLC
Managing Director, Long Term Disability Benefits
631.923.1595 ext. 340
G.R. Reid Consulting Services, LLC
631.923.1595 ext. 340
G.R. Reid Consulting Services, LLC
Disability insurance is a vital need for every American household. As consumers we
have many expenses, such as mortgage payments, lifestyle costs, or education funds; which are all funded through income.
have many expenses, such as mortgage payments, lifestyle costs, or education funds; which are all funded through income.
The average person’s most valuable asset is not their jewelry, their car, or even their home – it is their ability to work and produce income. The question must be posed:
How would my family and my lifestyle suffer if I was unable to generate an income?
The truth of the matter is that when Americans spend extended time on long term
disability leave from work, every aspect of their life becomes susceptible to lose. Without
having an income to pay monthly bills or to make mortgage payments, a person may stand to
lose all that he or she has acquired throughout their lives. Therefore, purchasing Disability
Insurance is one of the most responsible life decisions a person can make.
Individual Disability Policies Benefits
You may be asking yourself, "Why do I need to buy a disability policy? My job offers me
disability coverage through my employment.” This could be the case, however, there are
important differences between disability coverage offered by employers and owning your own
individual policy.
You may be asking yourself, "Why do I need to buy a disability policy? My job offers me
disability coverage through my employment.” This could be the case, however, there are
important differences between disability coverage offered by employers and owning your own
individual policy.
A. Portability
An individual policy is portable, meaning that if you switch companies, your
profession, or you decide to relocate; an individual policy will follow you to your
new job or your new life in a different city. A disability policy provided by an
employer will not. This is a problem that professionals often encounter when going
into private practice. After years of having group coverage through an employer, now
they must purchase their own policy and pay higher premiums or be denied entirely
because they are now older and, statistically speaking, most likely less healthy. By
purchasing an individual policy at a young age, this can be totally avoided.
An individual policy is portable, meaning that if you switch companies, your
profession, or you decide to relocate; an individual policy will follow you to your
new job or your new life in a different city. A disability policy provided by an
employer will not. This is a problem that professionals often encounter when going
into private practice. After years of having group coverage through an employer, now
they must purchase their own policy and pay higher premiums or be denied entirely
because they are now older and, statistically speaking, most likely less healthy. By
purchasing an individual policy at a young age, this can be totally avoided.
B. Various Funding Mechanisms
Individual Disability Policies have many different riders and additional coverages that
are attractive to both seasoned employees and young people just entering the work
force. Disability policies may cover (i) student loan payments, (ii) overhead business
expense costs (iii) retirement protection- by replacing retirement contributions made
by you and your employer, and may provide (iv) Own Occupation Coverage, allowing
certain classes of professions to continue receiving benefits after they return
to work, if by returning to work they are forced to switch professions or job titles.
Individual Disability Policies have many different riders and additional coverages that
are attractive to both seasoned employees and young people just entering the work
force. Disability policies may cover (i) student loan payments, (ii) overhead business
expense costs (iii) retirement protection- by replacing retirement contributions made
by you and your employer, and may provide (iv) Own Occupation Coverage, allowing
certain classes of professions to continue receiving benefits after they return
to work, if by returning to work they are forced to switch professions or job titles.
As always our G.R. Reid Consulting Service Life, Disability, and Long Term Care
Insurance team is available to assist you with any questions, to set an appointment please call us at 631-923-1595.
Insurance team is available to assist you with any questions, to set an appointment please call us at 631-923-1595.
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