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Disability Insurance


96.5% of disability insurance claims are from illness, not injury.


1-in4 20-year-olds today will become disabled before reaching retirement.


The majority of business agreements plan for a buy-out in the event of disability (one of the top 3 transition triggers), but fewer than 20% of plans are currently funded with disability buy-out insurance.

How long could your client maintain their lifestyle and investments without their income? While your clients don’t hesitate to insure their cars, homes, jewelry, and even their art, they often forget to insure their most valuable asset – their income!

Income is the financial engine that drives your client’s investments, retirement goals, and quality of life. Disability insurance is commonly known as income or pay-check insurance and helps protect your client’s financial foundation.

For businesses, disability insurance policies help keep the business running if the owner or another key employee becomes disabled. Key person replacement, disability buy-out, and business over-head insurance provide benefits at the time they are needed most. These help keep businesses open that have lost a key resource and also ensure a a smooth transfer of the business when needed.

No one knows what the future holds, but OWR team is committed to bringing you solutions so you can help your clients adequately plan for the potential unknown risks of tomorrow.



The Clients

We met Bill, an IT consultant and Lisa, a doctor when they were 30. Bill was earning $100,000 a year and Lisa was earning $200,000. At the time they had just had their first child and wanted to make sure she was protected financially should something happen to them. The attorney that helped them with their will referred them to an OWR agent for income protection, both for premature death (they purchased $2,000,000 of term insurance each) and disability income insurance should they become sick or disabled and unable to work in the future.


The Policies

At 30, Bill spent 1.6% of his annual income ($1,685) for a $60,000 annual disability benefit, while Lisa spent 2.8% of her income. Each policy included an Own Occupation and Residual/Recovery riders to offer them the most flexibility in the future. Similar policies purchased at age 40 would still require only a fraction of their income (2.5% and 3.6% respectively) to replace 60% of their pre-tax annual income, with benefit periods to age 65 and a 90-elimination period.


The Result

Just 5 years after purchasing the policy and 6 months after having their second child, Lisa was diagnosed with breast cancer. She made a full recovery but it was a scary year. Lisa was out of work for a year, and was able to collect disability benefits for 9 of those months. While she was out of work with 2 young children, she received $90,000 tax-free income from her disability policy to help with additional child care and basic household expenses.