Long-Term Disability

Description
Disability insurance policies insure the individual against the loss of employment earnings due to the individual being unable to continue job duties because of an injury or sickness.

Objective
To replace a portion of a person's employment income in the event of illness or injury.

Suitability
Suited for any individual or business owner under age 60 with employment income who has insufficient liquid assets to sustain a loss of income due to a disabling injury or sickness.

Product Features

• Definition of Disability - Defines under what circumstances a person qualifies for benefits. The most liberal definition defines disability as the inability to do the substantial duties of one's current occupation.
• Renewal Provisions - Indicates under what circumstances the policy can be renewed and if premiums can be raised. The most liberal definition is "Non-cancelable Guaranteed Renewable," which means the policy can only be canceled due to nonpayment of premium and premiums cannot be increased.
• Monthly Benefit Amount - Generally up to 60 to 75 percent of employment income.
• Elimination Period - This is the period of time when no benefits are payable, generally 90 days to two years.
• Benefit Period - This is the length of time benefits will be payable. Time periods typically range from two years to age 65.
• Waiver of Premium - Cost of policy is waived after 90 days of disability.

For more information, please contact your local financial advisor.