Providing income protection for business owner clients in manual occupations can be a challenge. Individual disability income policies for these occupations with higher premiums, yet shorter benefit periods–usually 2-5 years–and fewer riders. In most cases, individual disability is the most comprehensive disability protection available; however, in the case of some manual occupations, a small group LTD plan may offer more protection for your business owner clients.

What are some of these occupations?

• chiropractor
• electricians
• plumbers
• construction/contractors
• heating and air conditioning

If there is more than one employee, a small group LTD carrier may be the solution. Consider the following:

• Groups of 2-19 lives
• 3-year rate guarantee
• Employer can pay all of, part of, none of the premium (can be 100% employee paid)
• 3-year own-occupation definition
• Availble to 90% of SIC industry classifications
• To age 65 benefit period for all occupations
• Guarantee issue/No medical or financial underwriting
• Husband and wife groups

If the business owner is the sole employee, individual carriers have introduced some simple, affordable alternatives to traditional DI insurance, such as:

• Critical illness: simplified (12 covered illnesses) or fully undewritten (23 covered illnesses)
• Dinamic Fundamental–an alternative to traditional DI insurance

Critical Illness policies pay a lump sum ($5K-$500K) at the first-ever diagnosis of up to 23 covered critical illnesss, including heart attack, stroke or cancer. In fact, it is possible to collect a lump sum payout more than once, if the insured has multiple covered diagnoses.

Dinamic Fundamental is new disability product that pays a lump sum equal to 1x the insured’s salary in the event he or she is diagnosed to be too sick or injured to work at any reasonable occupation based on their education and training for at least one year. There are no riders or elimination periods, and it’s priced to be affordable for middle income occupations.

When an individual disability policy is too costly or provides minimal protection because of the client’s occupation requiring manual duties, suggest these alternatives to your client.

For more information about these products: Contact Steve Crowe at ext. 222, Ellen Crowe at ext. 223 or Brian Hettmansberger at ext. 230 for quotes, tools and sales strategies.  Also try our online quote request tool.