often referred to a "Income Protection"- this type of insurance contract is relating to replacement of income due to sickness or accident which results in the inability to perform your occupation at the time the disability commenced. Statics show that a disability occurrence is about sixteen times greater than death. The need analysis takes into account current income, how long income will continue from employment once disability occurs and the timing of when income from your employer will commence? From this analysis, a recommendation will be provided as to whether or not disability income insurance is needed. Once this is established, a benefit start date, coverage period, and any optional riders to enhance the basic disability insurance contract will be recommended.
Disability insurance coverage can be written as an employer sponsored plan which is referred to as "Group Disability" coverage. Individual disability insurance can be written which often provides greater options such as extended disability coverage periods, custom benefit start dates, and optional benefit riders to enhance the basic disability insurance coverage. Individual coverage is also portable and will provide coverage based on your occupation at the time of disability.