Looking for Disability Insurance? Where should I start? Any suggestions of good proviers?

Question

I have recently became a independent consultant and am looking for getting a Disability insurance. Would like to know the experience of other people who got disability insurance privately like me.

Answer 1

Disability insurance purchased individually is expensive. Also, if you are an independent consultant, be sure that your disability payment will be based on your past earnings -- perhaps a five year running average. Otherwise, if you have a bad year, your disability insurance could get away with paying you little or nothing if you ever actually need it.

You can only get coverage up to a certain percentage of your income. Even if you get as much disability insurance as possible, in most areas of Canada and the US, you can only collect a maximum of 80% of your pre-disability income. Your lowest cost option will be for a policy that will provide you with 60% of your income. Given that you are getting this policy individually, and are paying for it with after tax dollars, any payments to you will be tax free.

Answer 2

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Answer 3

"ML Attinger" gives good advice. I'll just add a few observations:
1) If you are just starting out in your new career, the insurance company may have some problems determining how to insure your income since you probably don't have much of a history of income in that occupation class. Usually, they want two years of income history for that class.
2) "Consultant" sometimes run into problems getting DI because the insurance companies don't know exactly what you do. Provide your agent with as much specific information about what you will be doing as possible. I would suggest a detailed "cover letter" to the application explaining such.
3) And, speaking of agents, try to find an independent agent that has some experience with disability income insurance. Not many agents know how to do it well. A few actually do nothing else and they would be the best to help you.
4) Carriers that have dedicated DI divisions or that specialize in DI are: The Guardian, Northwestern Mutual, MetLife, Standard of Oregon, The Principal Financial, Mass Mutual, and Unum Provident.
5) Final thought: if you have any history of anti-depressant or anxiety medication, you are almost assured of not getting successfully underwritten by the major carriers. I only know of one (there are probably others) that consider it and it's called Fidelity Standard out of IL.

Good luck. This coverage is extremely important and often ignored by consumers. You are very wise to seek it.

Answer 4

All I can answer to this, Is be very carefull. I had %200 coverage in case of an Illness or injury. Became very ill at work, and attempted to collect my insurance, they told me that my illness was NOT covered, even though I could no longer return to work. So be very detailed in looking thru the options. Most companys will sign you up, but will NEVER pay when needed.

Answer 5

They are the best providers in disability insurance,
"http://www.tkqlhce.com/email-1961891-10425141"

Answer 6

I hope this link will give you the reqired information....


http://www.freewebs.com/get_loan/

Answer 7

Visit www.disabilityinsuranceforums.com and ask there