This product helps individuals continue saving for their retirement if they become too sick or hurt to work. In the event of a disability, benefits are paid to an irrevocable trust where the funds are invested. There are several investment options available including trust options, an annuity and mutual funds.

Contract Details

  • Benefit Period – Commonly for 10 years up To Age 67
  • Elimination Period – Typically a 180 Day minimum
  • Common Definitions of Disability
    • Own-Occupation & Not Working – Benefit pays out if you are unable to perform the duties of your occupation and not working in any other field.
    • True “Own-Occupation” – Benefit pays out if you are unable to perform the duties of your occupation. During that time, if you are able to work in another occupation, you can, and still collect the benefit from your original occupation. (Ex. – If you no longer can be a surgeon, you would collect your monthly benefits even if you decided to become a teacher. Solely protects your specific occupation.).
  • Common Riders
    • Future Increase Option – (AKA – Benefit Update) – Allows the insured to increase the monthly benefit in the future without the need to show proof of medical insurability, but will need to show proof of financial insurability to justify the increase.
    • Cost of Living Adjustment – While you are receiving monthly benefits, your payments are adjusted to keep up with the pace of inflation. Typically between 3% and 6% with simple or compounding inflation (dependent on carrier).