Any professional that depends on their income should consider purchasing Disability Income insurance. It is the most effective and commonly used way of protecting a person’s income from a debilitating injury or illness. Although the concept of Disability insurance can be fairly simple, the provisions and benefits it provides can make purchasing coverage a bit complicated. Depending on how you earn your income, there may be some benefits that are substantially more important for you than for others.
As a Sales professional, you are offered one of the best Occupation classes available with most of the major insurance carriers. Not only does this assist you in keeping the premiums affordable, but also qualifies you for the better policy options and riders available with most carriers. Policy riders are additional benefits that can be added to a basic Disability insurance policy in order to enhance the level of coverage your policy provides.
Although there are many important benefits and optional riders available, Sales professionals should focus on two primary benefits that may assist in protecting their income in the best way possible. The first pertains to the Definition of Total Disability. There are various versions offered depending on the insurance carrier you decide to work with, however you want to focus on purchasing an Own Occupation definition of disability. The Own-Occupation definition will provide income protection for when you are specifically unable to perform the material duties of a Salesperson. As you move closer to purchasing Disability insurance, you should be aware that this definition of disability can be stated in two very unique ways, one of which will allow you to work in a different Occupation while collecting benefits, and the other which will reduce your benefit if you earn any other income.
Although either version will provide you the Occupation-specific protection you need, the “True Own Occupation” definition, (which allows you to work in a different occupation while collecting benefits) is certainly preferable. After all, sales people are paid by their production and if you are not able to sell any longer, chances are that you will try to do something else if at all possible. The True Own Occupation definition of disability will reward your devotion and hard work, where as the Modified Own Occupation definition will do the opposite by reducing your benefits with any earned income you receive.
Sales professionals more so than some other professions truly understand the benefit of being capable to work a full day at full potential. Unless you are making sales, you are not making any money, which is what keeps you driven to work hard and smart. This is exactly why it is essential that you include a benefit for partial disabilities known as Residual Disability benefits. Some insurance carriers will provide Residual benefits in their basic policy design and others will require you elect it as an optional rider – regardless of how it is done, be sure to include these benefits in your policy.
Additionally you should also pay close attention to the requirements which must be satisfied in order to receive Residual benefits for a partial disability. Some insurance carriers require a loss of income and loss of time or duties – as a Sales person however, you want to be sure you are only required to experience a loss of income. Depending on the exact injury or illness you experience, you may still be able to put in the same amount of time, but earn a considerably lower income.
Depending on your age, concerns, and primary goals, there are other provisions and benefits that you should pay close attention to as well. For example, a young Sales person should be sure to include the Future Purchase Option rider, which will allow him/her to increase his/her monthly benefit as income increases and without being medically underwritten. Therefore protecting his/her ability to purchase additional benefits, even if there is a change in health. The Cost of Living Adjustment rider is another optional benefit that many Sales professionals will elect to include on their Disability policy. The COLA increases your monthly benefit each year that you remain on claim for Total disability.
One of the most important steps to purchasing a Disability policy is finding an experienced insurance agent who can assist you in comparing multiple options and truly understanding the benefits of purchasing one policy vs. another. You want to be sure that if spending the money to protect your income, you do so with quality Disability Insurance for Sales Professionals.