What is Disability Insurance

 Disability insurance is one of the most important yet often overlooked forms of protection for both individuals and businesses. It provides a financial safety net by replacing a portion of your income if you're unable to work due to illness or injury. Whether you're a salaried employee, self-employed, or a business owner, disability insurance helps ensure your financial responsibilities are met—even when your ability to earn an income is interrupted.

Unlike health insurance, which covers medical costs, disability insurance covers your income—allowing you to continue paying for essentials like housing, food, utilities, insurance premiums, and childcare. It gives you peace of mind, knowing that your lifestyle and financial goals don’t have to come to a halt if your health takes a turn.

For individuals, your income is your greatest asset. It supports your family, pays your bills, helps you save for the future, and allows you to enjoy life. A sudden illness or accident that leaves you unable to work can quickly drain savings and create serious financial stress. Disability insurance provides income replacement, so you can focus on recovery—not on how you’ll pay your bills.

For business owners, the impact of disability can extend beyond personal finances. If a key employee or partner is unable to work, your business operations and revenue could be at risk. Business disability insurance policies can cover lost profits, pay for overhead expenses, or fund a buy-sell agreement in the event a partner becomes permanently disabled.

There are two main types of disability insurance:

1. Short-Term Disability Insurance
   • Typically covers 3 to 6 months.
   • Designed to replace a portion of your income after a short waiting period (often 7 to 14 days).
   • Used for temporary conditions like surgery recovery, illness, or maternity leave.

1. Long-Term Disability Insurance
   • Kicks in after short-term benefits end (usually 90 to 180 days).
   • Provides income for several years or even until retirement, depending on the policy.
   • Designed for more serious or long-lasting conditions such as cancer, back injuries, or mental health disorders.
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Other types of disability insurance for businesses include:

• Business Overhead Expense (BOE) Insurance – Covers rent, salaries, and other fixed business expenses if the owner is disabled.
• Disability Buy-Out Insurance – Provides funds for business partners to buy out a disabled owner’s share.
• Key Person Disability Insurance – Protects the business against the financial loss of a key employee’s absence due to disability.

If you become disabled and meet the conditions in your policy, your insurer begins paying you a monthly benefit after a waiting period (known as the elimination period). The amount you receive is usually between 50% to 70% of your gross income, and the payments continue for the duration of your benefit period—or until you're able to return to work.

The application process includes:

1. Consultation – Work with a licensed advisor, like those at Fortunium Insurance, to understand your income, job duties, and coverage needs.
2. Application – Submit personal and health information. A medical exam may be required.
3. Underwriting – The insurance company assesses your risk and issues a quote.
4. Approval and Activation – Once approved and your premium is paid, your policy goes into effect.

Anyone who earns an income can apply for disability insurance. This includes:

• Employees
• Self-employed individuals
• Business owners
• Contractors
• Freelancers

The best time to apply is when you’re healthy and actively working, as premiums are lower and approval is more likely.

At Fortunium Insurance, we specialize in helping individuals and businesses find the best disability insurance policies from top-rated insurance carriers. We’ll guide you through the entire process—from comparing plans to completing the application—so you can protect your income, your business, and your peace of mind.

Call 813-302-1361 today to schedule your free consultation and secure the protection you deserve.