Disability Insurance

Disability insurance, though often overlooked in personal financial planning, stands as a critical pillar of security, safeguarding your most valuable asset: your ability to earn an income. The unfortunate reality is that a significant percentage of working adults will experience a disability lasting longer than 90 days at some point in their careers, making the ability to continue earning wages impossible. Without a steady income, even the most meticulously planned financial strategies can quickly unravel, jeopardizing homes, savings, and future goals. At Elite Insurance Agency, Mark Silvestain and his team are dedicated to raising awareness about the vital importance of “Disability Insurance,” providing personalized solutions that ensure individuals and families maintain financial stability when life takes an unexpected turn.

The fundamental purpose of disability insurance is to replace a portion of your income if you become unable to work due to illness or injury. Unlike workers’ compensation, which only covers work-related incidents, disability insurance typically covers disabilities resulting from a broader range of causes, including accidents, illnesses (like cancer or heart disease), and mental health conditions, as long as they prevent you from performing your job duties. This distinction is crucial, as the vast majority of disabilities are not work-related. Elite Insurance Agency helps clients understand the various types of disability insurance and how they function to provide this essential income protection.

There are two main types of disability insurance:

• Short-Term Disability (STD): This coverage typically replaces a portion of your income (often 50-70%) for a shorter period, usually ranging from a few weeks to several months (e.g., 3-6 months). It’s designed to cover temporary disabilities that prevent you from working for a limited time. Many employers offer STD as a benefit, but if yours doesn’t, Elite Insurance Agency can help you explore individual STD options.
• Long-Term Disability (LTD): This is arguably the more critical type, designed to provide income replacement for an extended period, which could be several years or even up to retirement age, depending on the policy. LTD typically kicks in after a waiting period (elimination period) of 30, 60, 90, or 180 days, often after STD benefits have been exhausted. LTD is vital because a long-term disability can permanently derail your financial life without it. Mark Silvestain’s team specializes in crafting robust LTD plans that ensure continuous income when you need it most.

Key definitions and features within disability insurance policies that Elite Insurance Agency clarifies include:

• Definition of Disability: This is perhaps the most critical component. “Own occupation” disability means you’re considered disabled if you can’t perform the duties of your specific job. “Any occupation” means you’re disabled if you can’t perform any job for which you’re reasonably qualified. “Own occupation” is generally more expensive but offers broader protection. Elite Insurance Agency helps you understand the implications of each definition for your career and financial security.
• Benefit Period: How long the policy will pay benefits (e.g., 2 years, 5 years, to age 65).
• Elimination Period (Waiting Period): The time from when your disability begins until you start receiving benefits.
• Benefit Amount: The percentage of your income the policy will replace (typically 50-70% to account for tax differences and reduce moral hazard).
• Cost of Living Adjustment (COLA) Rider: An optional feature that increases your benefit amount over time to keep pace with inflation.
• Future Increase Option Rider: Allows you to increase your coverage later without further medical underwriting, important as your income grows.

The need for disability insurance is widespread, impacting virtually all working individuals. Whether you are a salaried employee, a self-employed professional, a small business owner, or a contractor, your income stream is the foundation of your financial life. Without it, you cannot pay your mortgage, buy groceries, save for retirement, or provide for your family. Elite Insurance Agency conducts a thorough analysis of your financial obligations, income sources, and existing group benefits (if any) to recommend a disability policy that seamlessly integrates into your overall financial plan, protecting against gaps in coverage.

Premiums for disability insurance are influenced by several factors: your age, gender, occupation (some professions are riskier than others), health status, the benefit amount and period, and the elimination period. Mark Silvestain’s team works with a diverse portfolio of reputable disability insurance carriers, allowing us to compare various options and secure the most competitive rates for our clients. We guide you through the application process, which may involve medical underwriting, ensuring you understand each step and receive the best possible offer.

Disability insurance is an investment in your future earning potential. It offers invaluable peace of mind, knowing that if illness or injury prevents you from working, your financial responsibilities can still be met. Elite Insurance Agency, under the expert leadership of Mark Silvestain, is committed to providing clear, unbiased advice and personalized “Disability Insurance” solutions. We empower you to protect your income and secure your financial stability, ensuring that even in the face of unforeseen challenges, your destiny remains firmly in your hands. Don’t leave your financial future to chance; let Elite Insurance Agency help you build this essential layer of protection.