DISABILITY
INSURANCE....What is it?
There are essentially 2 different types of disability
insurance in the industry. These are:
1. CANCELLABLE
2. NON-CANCELLABLE
Most companies
now sell both types. #2 is the most preferred,
provides the greatest
guarantees, and provides the greatest security
to the client.
Non-cancellable
coverage means the following:
1. The
premium can't be increased by the insurance company
2. The contract can't be changed by the insurance
company
3. Coverage can't be cancelled/altered by the
insurance
company due to any reason
(even adverse claims experience)
Cancellable
coverage means the following:
1. The
premium can be increased by the insurance company
based on claims experience
for all people insured within an occupation-class
in a
particular region
2. The contract can be changed by the insurance
company for
all people insured within an occupation-class
in a particular region
3. Coverage can be altered by the insurance company
due to
any reason (even adverse claims experience)
Disability
coverage is tailored to meet your specific needs.
The 3 variables
which most influence your disability insurance
costs are:
1. INSURANCE
AMOUNT (MAX. 70% OF GROSS INCOME)
2. WAITING
PERIOD (1ST DAY TO 2 YEARS)
3. BENEFIT
PERIOD (MAX. LIFETIME BENEFITS)
Disability
insurance, with any company, is about one thing:
DEFINITION! With life insurance, it is hard to
fake death. It is a cut and dry issue. With disability
insurance, however, there are so many things to
compare:
1. What
is the definition of disability?
2. For how long are the premiums guaranteed?
3. Can the company make changes to the contract?
4. What happens if you change occupations?
5. Are there integration clauses restricting payments?
6. Are sickness and accident disabilities paid
in EXACTLY the same way and for
the same length of time?
Without
an income, your lifestyle couldn't be sustained.
If you become disabled tomorrow, from where would
your income come?
DO
YOU NEED DISABILITY INSURANCE?
As an employer, I would like you to come and work
for me but I am having a difficult time deciding
what wage I should pay you.
Being a good sport and being unable to make these
difficult decisions, I would like to offer you
two wage scenarios and let you choose one with
which you would be most happy:
WAGE
1 |
WAGE
2 |
| Gross
wage- $36,000 |
Gross
Wage- $35,000 |
| Taxes
- $ 7,860 |
Taxes
- $ 7,460 |
| CPP/EI
- $ 2,340 |
CPP/EI
- $ 2,275 |
| Net
Pay- $25,800 |
Net
Pay - $25,265 |
| If
you ever become sick or injured and cannot
work you are on your own and your salary will
be cut off. |
If
you ever become sick or injured and cannot
work, I will guarantee you $18,000 per year
(indexed) until you reach age 65. |
Which
one of these wages would you prefer?
Do
you want information on life or disability insurance,
a quotation, or a no-obligation Needs Analysis
conducted for you?
E-mail: protect@barkermoney.com
|
