Disability Income insurance is one of the most important types of insurance a professional can have. It protects the one thing that people cannot survive without – the ability to earn an income.
Purchasing Disability insurance however, can be a bit more complex than most people would expect. There are certain benefits that one Profession may benefit from more so than someone in a different profession. For Sales professionals, one of the most important benefits included in a Disability insurance policy is the Residual Disability benefit.
Residual Disability benefits provide scalp massager benefits for a partial Disability claim, where a loss of income is experienced as the result of an illness or injury. Sounds simple, but if you have done enough research on Disability insurance, you probably would have guessed that this can be much more complex than it seems.
The first thing a sales person should concentrate on regarding the Residual disability benefit is how to qualify for claim – in other words, what must happen in order to receive benefits. The two most common requirements for these benefits are: a loss of time/duties and a loss of income (15-25% or greater loss, depending on the company). Most of the insurance carriers today require that a person satisfy both a loss of time/duties and income, however there are a few companies that only require a loss of income. As a sales person you should carefully consider purchasing a policy with Residual disability benefits that only require a loss of income, as it is more likely to actually pay benefits.
The next thing to consider is the benefit amount that is payable in a partial disability claim. Typically Sales professionals can expect to receive a benefit that is proportionate to the loss of income. For example: a 50% loss of income would generate a benefit equal to 50% of your total monthly benefit. This is a common benefit structure for Residual disability benefits, however some insurance carriers will have varied benefit structures for the first 6-12 months of a claim.
Some companies will pay no less than 50% in the first 6 months, even if your loss of income is less than 50% and some carriers will pay the full loss of income, up to 100% of the total monthly benefit, rather than paying a proportionate benefit. As a Sales professional, you should be sure to have your insurance agent assist you in comparing the various versions of this benefit. It is in your best interest to purchase coverage from a company that is willing to pay you the largest benefit for a residual claim.
Lastly and possibly most importantly is the recovery benefit offered through your Residual Disability benefits. A recovery benefit is paid when a person returns to work after full recovery from a total disability claim but still has a loss of income. As you likely have already realized, Sales professionals are very susceptible to this possibility. By the time you return to work, begin to prospect and start making sales it could be a few months to a few years before your income is back to normal, if ever.
Because of how susceptible Sales professionals are to this risk, it is essential that you find a policy with Residual Disability benefits that pay recovery benefits for the full policy benefit period. Some companies will limit their recovery benefits anywhere from 12-months to 36-months. Although it is hopeful that a full income recovery is made as quickly as possible, a Salesperson’s recovery will be substantially slower than most professionals and should be protected as such.