Overview of Purchasing Disability Insurance While Working

Preparing for the future is sometimes not at the top of the list of things to do, but in reality, making sure you have taken steps to ensure your future lifestyle in West Bloomfield, MI should be a priority, as unexpected situations can happen at any time. When you speak with one of our agents at Phil Klein Insurance Group, you will have useful information that can help you put into play a plan of action.

Benefits of Disability Insurance in West Bloomfield, MI

In today’s world, many, if not the majority, of most people plan to have a working career until they are eligible to retire. Even then, people still continue to work after reaching retirement age. An option to ensure your financial stability in the event of an illness, injury, or accident during your working career that results in you no longer being able to work is purchasing long-term disability insurance.

There are two types of disability insurance: short-term and long-term policies. Short-term is for a set number of weeks and, for some policies, up to a year.

For those wanting to protect their financial stability, long-term disability policies provide coverage for many years or for life.

Pros

Protects having an income.

When purchased privately, benefits are tax-free.

You decide how the payments received are spent.

Supports keeping financial obligations current. It helps avoid accruing debt and possible bankruptcy.

Provides peace of mind.

Cons

Premiums increase in price as you get older.

Premiums can be expensive for jobs deemed dangerous.

Pre-existing conditions may not be covered.

The waiting period for coverage varies (days to years).

Benefits are paid only for disability situations.

1. “I KNOW WHAT MY BUSINESS IS WORTH”
•Have you ever had your company value appraised by an outside resource?
•Has that appraisal been done within the last three years?
•Do you have a Buy/Sell agreement? •Is it funded?
•Has it been reviewed within the last three years?
•Do you know where your Buy/Sell agreement is kept?

2. “I’M TOO BUSY RUNNING THE COMPANY”
•Do you have a will? •A trust?
•Is it up to date?
•Do you have a plan to retain key employees if something happens to?
•Has your Trust & Estate Plan been reviewed in the last three years?
•Have you identified and written down your trusted advisors?

3. “THAT’LL NEVER HAPPEN TO ME”
•Do you have a succession plan in place?
•Have you involved both key employees and family members in your succession planning?
•Does your succession plan have a provision for disability?
•Have you identified or written down who you want to run the company?
•Do you have disability buy-sell overhead expense coverage?

4. “THERE’S PLENTY OF TIME FOR THAT”
•Do you know when you want to retire? •How much income will you need?
•Do you want to be running the company full-time, five years from today?
•Do you know how much control in the business you must maintain in order to secure your retirement income?
•Have you explored financing opportunities for key employees to buy the company in the future?

5. “MY BUSINESS IS MY RETIREMENT”
•Do you have a retirement vehicle other than your business?
•Is 25% or less of your business assets a part of your retirement plan?
•Will your retirement funding come from more than four sources?
•Have you had your retirement income projected/analyzed to identify shortfalls?
•In the past year, have you spent more than one hour planning for retirement?

6. “YOU CAN’T BEAT UNCLE SAM”
•Do you have a TEAM of financial advisors working with you?
•Are you proactively planning to deal with changes in the tax laws?
•Will any sources of your retirement income be received tax free?

Questions? Concerns? Call Owen Rosen at (248) 682-7445 today or email owen@philkleininsurance.com