What Is The Purpose Of Having Disability Insurance?
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63333 POINTSview profilePeggy MaceMost of the U.S.The purpose of having Disability insurance is to provide income to your family in the event that you become unable to work due to illness or injury. Disability insurance pays cash to you that you can use to support your family during the time of your disability, or until the policy ends after a set period of time, depending on the features of the policy purchased.Answered on May 18, 2013flag this answer- 10 POINTSview profileDaniel Steenerson, CLU, ChFC, RHUPresident & CEO, Disability Insurance Services, San Diego, CAPeggy Mace provides a wonderful answer to this question. I would add that there is an array of business disability insurance products available that are often overlooked yet important. As an example: Business Overhead Expense (BOE) policies pay the overhead expenses of a disabled business owner/professional. This is important because the business cash flow is interrupted upon a business owner's disability. The BOE policy will reimburse the disabled business owner for his expenses. Food for thought.Answered on August 19, 2013flag this answer
2180 POINTSview profileKelly MoserSocial Media Strategist, Disability Insurance Services, CaliforniaAlong with the answers above, another type of important disability coverage is Key Man (or Key Person) disability insurance. This is purchased when a business has a sole employee who's absence would drastically affect revenue and production. The benefit is paid to the company and can go toward myriad areas, including employee salaries, production, resources, etc.Answered on November 12, 2013flag this answer
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