17 percent of American families (1 in 6) have at least 1 adult who is disabled from employment (Source: 2000 U.S. Census) 
READ MORE
82 percent of American workers have inadequate or no disability protection (Source: Consumer Federation of America and American Council of Life Insurers, 2003) READ MORE
Business Owners IQ - When More Costs Less
When Lori Holden set out to protect her income, she was ultimately protecting her employees’ paychecks as well. The 46-year-old accountant is a sole-proprietor with two clerical employees. Lori wanted disability insurance for herself so she called an agent. He quoted her the following:
Disabling Definition: Own-Occupation
Benefit Amount: $4,000 per month
Elimination Period: 90 days
Benefit Period: To age 67
Policy Features: Non-cancelable, Residual, COLA riders
Annual Premium: $4,829
The policy broke down to costing $13.23 a day, which seemed a bit pricey to Lori. Though she understood the value of the policy and its worth, she wanted to spend about $10 a day. She talked with her agent some more.
The agent found a solution that knocked close to $2,000 off the annual premium. His solution, which saved $1,762 per year, brought Lori into her budget. So what coverage did Lori give up in exchange for the lesser price? None.
The agent didn’t water-down the disabling definition, extend the elimination period, shorten the benefit period or remove any important policy features.
Instead, all he did was add Lori’s two clerical employees to the policy. By taking advantage of generous multi-life discounts, Lori was able to keep the exact same coverage as quoted and give her employees some benefits. With disability policies containing a $600 per month benefit, a 365-day elimination period and a two-year benefit period, Lori’s employees finally had some paycheck protection.
The biggest surprise though, was the total annual premium for all three lives was just $3,067 — an amazing $1,762 less than quoted for just Lori’s case. So, Lori now has the rock-solid protection she needs and her employees have another reason to stay with her – FREE disability coverage. It is a win-win scenario all around.
Is this too good to be true?
This case may seem like a fairy tale, but it’s true. Higher volumes can result in lower prices. If you own a business, you owe it to yourself and your employees to find out how multi-life discounts can work for you.
Back to Disability Insurance Education