{"id":476,"date":"2024-11-05T21:25:22","date_gmt":"2024-11-05T21:25:22","guid":{"rendered":"https:\/\/webdesign.quoteplicity.com\/keyperson\/?page_id=476"},"modified":"2024-12-16T17:29:51","modified_gmt":"2024-12-16T17:29:51","slug":"key-person-disability-insurance","status":"publish","type":"post","link":"https:\/\/webdesign.quoteplicity.com\/keyperson\/key-person-disability-insurance\/","title":{"rendered":"Key Person Disability Insurance &#8211; A Comprehensive Guide"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"476\" class=\"elementor elementor-476\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3b07398 dynamic-content-section toc-fetch e-flex e-con-boxed e-con e-parent\" data-id=\"3b07398\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-19037e1 e-con-full e-flex e-con e-child\" data-id=\"19037e1\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-3f900a5a e-con-full e-flex e-con e-child\" data-id=\"3f900a5a\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-89a46f9 elementor-widget elementor-widget-heading\" data-id=\"89a46f9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Why Key Person Disability Insurance?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0a79382 elementor-widget elementor-widget-text-editor\" data-id=\"0a79382\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>One of the most overlooked risks for many small businesses is the disability of a key employee or business owner. Just ask yourself, what would happen to your business if your top salesperson came down with a severe illness and was unable to work for a year? Or worse, a business partner is in an accident that renders her incapacitated for the foreseeable future?<\/p>\n<p><strong><em>\u201cAccording to the 2019 Small Business Owner Survey conducted by the Harris Poll, 96% of all questioned stated they had at least one key person.\u201d<\/em><\/strong><\/p>\n<p>If your company is dependent upon an individual with specialized abilities, key person disability insurance is a smart and economical way to transfer the risk and avoid a potential disaster when that person is unable to work due to injuries or illness. The good news is that a business disability insurance policy is most likely attainable and relatively affordable!<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-20bd571 e-con-full e-flex e-con e-child\" data-id=\"20bd571\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-8692c67 elementor-widget elementor-widget-heading\" data-id=\"8692c67\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What is Key Person Disability Insurance?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-145ee77 elementor-widget elementor-widget-text-editor\" data-id=\"145ee77\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><a href=\"https:\/\/www.keypersoninsurance.com\/key-man-disability-insurance\/how-it-works\/\" target=\"_blank\" rel=\"noopener\">Key person disability insurance<\/a>, also referred to as key man disability insurance or key person replacement coverage, protects a business from economic loss if a key employee, executive, or business owner suffers a disabling accident, injury, or illness. It is insurance that pays a cash benefit to the business to help them deal with the loss of a significant revenue producer.<\/p><p>This unique form of disability insurance covers the threat of a short-term loss of a critical individual.<\/p><p><strong>Benefits can safeguard a wide variety of needs, including:<\/strong><\/p><ul><li>The cost of hiring and training a replacement<\/li><li>Overtime pay for existing staff to cover the added workload.<\/li><li>Covering necessary operating expenses such as rent, utilities or insurance<\/li><li>Paying creditors<\/li><li>Keeping the business viable until it can be sold or closed.<\/li><\/ul><p>Key person disability insurance coverage provides peace of mind to companies and business owners alike because it makes way for the company to continue operating without significant disruption even under the worst-case scenario. We have put together a comprehensive guide on\u00a0<a href=\"https:\/\/www.keypersoninsurance.com\/disability-income-insurance-faqs\/\" target=\"_blank\" rel=\"noopener\">key person disability insurance<\/a>\u00a0and how the coverage process works.<\/p>\t\t<div data-elementor-type=\"container\" data-elementor-id=\"5735\" class=\"elementor elementor-5735\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t<div class=\"elementor-element elementor-element-612d21b0 e-con-full remove-formatting spacing-medium e-flex elementor-invisible e-con e-child\" data-id=\"612d21b0\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;animation&quot;:&quot;bounce&quot;}\">\n\t\t<div class=\"elementor-element elementor-element-76355623 e-con-full e-flex e-con e-child\" data-id=\"76355623\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-6405d05 e-con-full e-flex e-con e-child\" data-id=\"6405d05\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7cbb323 elementor-widget elementor-widget-heading\" data-id=\"7cbb323\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<p class=\"elementor-heading-title elementor-size-default\">trusted by 5,000+ clients<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-516ecc79 elementor-widget elementor-widget-heading\" data-id=\"516ecc79\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<p class=\"elementor-heading-title elementor-size-default\">Compare  Disability insurance Rates<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-321c7710 elementor-widget elementor-widget-heading\" data-id=\"321c7710\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<p class=\"elementor-heading-title elementor-size-default\">See rates and benefits tailored to your business needs.<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-667a6b6f btn-orange-outline elementor-align-center elementor-widget elementor-widget-button\" data-id=\"667a6b6f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/webdesign.quoteplicity.com\/keyperson\/disability-insurance-quote\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Disability Insurance Quote<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-2de21c4e e-con-full e-flex e-con e-child\" data-id=\"2de21c4e\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<a class=\"elementor-element elementor-element-77349002 e-con-full trustseal noformat e-flex e-con e-child\" data-id=\"77349002\" data-element_type=\"container\" data-e-type=\"container\" href=\"https:\/\/www.trustpilot.com\/review\/keypersoninsurance.com\" target=\"_blank\" rel=\"noopener\">\n\t\t\t\t<div class=\"elementor-element elementor-element-11a2543b elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"11a2543b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"178\" height=\"44\" src=\"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-content\/uploads\/2024\/10\/trustpilot-white.png\" class=\"attachment-large size-large wp-image-237\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-746c05b4 e-flex e-con-boxed e-con e-child\" data-id=\"746c05b4\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-630f7ac1 elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"630f7ac1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"145\" height=\"26\" src=\"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-content\/uploads\/2024\/10\/5-star-yellow.png\" class=\"attachment-large size-large wp-image-239\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-54375ca9 elementor-widget elementor-widget-text-editor\" data-id=\"54375ca9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t4.9\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/a>\n\t\t<a class=\"elementor-element elementor-element-775a648a e-con-full trustseal noformat e-flex e-con e-child\" data-id=\"775a648a\" data-element_type=\"container\" data-e-type=\"container\" href=\"https:\/\/www.google.com\/search?hl=en-US&#038;gl=us&#038;q=MEG+Financial,+Inc.,+196+E+9+Mile+Rd+suite+g,+Pensacola,+FL+32534&#038;ludocid=161708842069222850&#038;lsig=AB86z5WV8WfdsxdnR62hrkbr9XEY#lrd=0x88909592b3334ad9:0x23e8155c89365c2,1\" target=\"_blank\" rel=\"noopener\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7a2d14a8 elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"7a2d14a8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"124\" height=\"48\" src=\"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-content\/uploads\/2024\/10\/google-white.png\" class=\"attachment-large size-large wp-image-240\" alt=\"Google reviews\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-1e74ae8d e-flex e-con-boxed e-con e-child\" data-id=\"1e74ae8d\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7211071b elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"7211071b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"145\" height=\"26\" src=\"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-content\/uploads\/2024\/10\/5-star-yellow.png\" class=\"attachment-large size-large wp-image-239\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-51c9c2af elementor-widget elementor-widget-text-editor\" data-id=\"51c9c2af\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t5.0\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-8115ac1 e-con-full e-flex e-con e-child\" data-id=\"8115ac1\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-78bb491 elementor-widget elementor-widget-heading\" data-id=\"78bb491\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Why Buy Business Disability Insurance?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7891e50 elementor-widget elementor-widget-text-editor\" data-id=\"7891e50\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><a href=\"https:\/\/www.keypersoninsurance.com\/life\/\" target=\"_blank\" rel=\"noopener noreferrer\">Key man life insurance<\/a>\u00a0is a common risk management strategy implemented by small businesses to protect them from the death of a key person. For many companies, buying a keyman life policy is a \u201cno brainer.\u201d However, the threat of disability is significantly more likely than death at every age. This is the primary reason\u00a0<a href=\"https:\/\/www.keypersoninsurance.com\/why-buy-disability\/\" target=\"_blank\" rel=\"noopener\">why you should buy business disability insurance<\/a>\u00a0or a key person replacement policy. The statistics of disability versus death for given ages are tracked annually by the Social Security Administration in the report titled,\u00a0<a href=\"https:\/\/www.ssa.gov\/oact\/NOTES\/ran6\/index.html\" target=\"_blank\" rel=\"noopener noreferrer\">Disability and Death Probability Tables For Insured Workers<\/a>.<\/p><p>But what will happen to the company if a key person is disabled?\u00a0 With a disability, the business will likely confront significant financial anxieties, including:<\/p><ul><li>the loss of management skills and experience, particularly in smaller companies that don\u2019t have management depth<\/li><li>loss of business from the key employee disability<\/li><li>the disruption of business when clients delay or withhold their activity until the impact of a disability is known<\/li><li>increased expenses that are associated with hiring and training a replacement for the key employee<\/li><li>creditor concerns and waiting to assess how the key person\u2019s disability will impact the company financially<\/li><li>the loss of major \u201cGoodwill\u201d and the uncertainty that comes with it.<\/li><\/ul><p>A properly structured key person replacement plan protects the business by providing funds to help cover these financial uncertainties.\u00a0<em><strong>Bottom line: Don\u2019t overlook business disability coverage!<\/strong><\/em><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-d5b2831 e-con-full e-flex e-con e-child\" data-id=\"d5b2831\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-adb52c8 elementor-widget elementor-widget-heading\" data-id=\"adb52c8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Who is a Candidate for Key Person Disability Insurance?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-49f3834 elementor-widget elementor-widget-text-editor\" data-id=\"49f3834\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The answer of who is a candidate for key person disability insurance is pretty simple: most businesses have at least one person who has such an influence on the organization that their temporary loss could threaten the existence of the company.<\/p><p>There is likely someone in your organization who makes significant and unique contributions, and whose disability could have a negative financial impact. These key people can be employees and employers and may include:<\/p><ul><li>Shareholders or Equity Partners<\/li><li>Board Members<\/li><li>Senior Level Executives<\/li><li>Technical and Creative Experts<\/li><li>Inventors<\/li><li>Software Developers<\/li><li>Top Sales Professionals<\/li><li>Architects, Engineers or Attorneys who possess niche expertise<\/li><li>Business Owners<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-3ec2047 e-con-full e-flex e-con e-child\" data-id=\"3ec2047\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-95b3bd8 elementor-widget elementor-widget-heading\" data-id=\"95b3bd8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Does Key Man Disability Insurance Policy Work?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-556e7bf elementor-widget elementor-widget-text-editor\" data-id=\"556e7bf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Key person disability insurance reduces the risk of financial loss to a business.<\/p><p>The key employee is the covered individual under the policy, also called the\u00a0\u201cinsured.\u201d The business buys insurance coverage and makes premium payments. The company also owns the policy and is the beneficiary of any proceeds should there be a disability.<\/p><p>The following are the Key Person Disability Policy Basics:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1f7659b elementor-widget elementor-widget-heading\" data-id=\"1f7659b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Elimination Period or \u201cWaiting Period\u201d<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7401ba9 elementor-widget elementor-widget-text-editor\" data-id=\"7401ba9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The elimination period is the time that must be satisfied after a disability but before benefits become payable. A disabling injury or illness is a triggering event that starts the clock of the initial \u201cwaiting period.\u201d The elimination period begins when the key employee is disabled, so if there is a disability, it is essential to notify the insurance company of a potential claim as soon as possible.<\/p><p>Depending upon the insurance company guidelines, the elimination period can be as short as 30 days or up to 365 or even longer. The shorter the elimination period, the more you can expect to pay for the policy.<\/p><p>Typical elimination periods for key person replacement plans are 60 or 90 days. If a policy has a 90 day elimination period, in the event of a disability, monthly benefits become payable on day 91. Benefits are paid at the end of every month and continue as long as disability persists until the benefit period expires.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fbddf6d elementor-widget elementor-widget-heading\" data-id=\"fbddf6d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Benefit Payouts for Business Disability Insurance<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-93add46 elementor-widget elementor-widget-text-editor\" data-id=\"93add46\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>In the event of a disability, key person disability insurance pays benefits either monthly or in a lump sum or possibly both. The type of payout depends primarily upon the needs of the business but also product availability. The business disability insurance marketplace is limited in terms of viable insurance companies and policy options, which we discuss below.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1a7199d elementor-widget elementor-widget-heading\" data-id=\"1a7199d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Monthly Benefit Payout<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a4a5a76 elementor-widget elementor-widget-text-editor\" data-id=\"a4a5a76\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The monthly payout option states that after the initial elimination period, i.e., 90 days, benefits are payable monthly at a fixed dollar amount for the life of the policy, which is usually 6-24 months depending on the company\u2019s need and assumes the disability is ongoing throughout the benefit period.<\/p><p>Several factors determine the amount of monthly disability insurance benefit available, but the key person\u2019s income is the most significant factor. As a general rule, 150% of the income of the key employee is available under a monthly benefit approach. However, in some cases, additional monthly benefits can be available depending upon the specific situation and the ability to prove further need.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-afa17e1 elementor-widget elementor-widget-heading\" data-id=\"afa17e1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Example of a Keyman Replacement for a Monthly Benefit Plan:<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f14daa7 elementor-widget elementor-widget-text-editor\" data-id=\"f14daa7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>A policy with a $10,000 monthly benefit and a 90 day elimination period with a 12 month benefit period will have a total potential benefit of $120,000. Benefits are payable after the initial 90 days waiting period is satisfied. The first $10,000 benefit payment would be payable to the business on the 120<sup>th<\/sup>\u00a0day (90-day waiting period and payment at the end of the month). Each month after that, benefits are $10,000 as long a total disability persists up to 12 months, or the policy pays total benefits of $120,000 policy benefits.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9b33b61 elementor-widget elementor-widget-heading\" data-id=\"9b33b61\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Lump-Sum Benefit Payout<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cf6084a elementor-widget elementor-widget-text-editor\" data-id=\"cf6084a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The lump-sum benefit payout option requires a longer elimination period, usually 180 or 365 days before a single lump sum benefit is payable. At that time, if the key employee cannot perform the material and substantial duties of his regular occupation, the lump sum benefit is paid to the company, and the policy terminates. This approach is most appropriate when the business has significant cash flow or savings and can handle a shorter-term disability but will be affected over the longer term.<\/p><p>The lump-sum approach allows for up to 3 times the key person\u2019s annual income as a maximum potential benefit. There are situations where additional coverage may be needed, and this can be considered on a case-by-case basis based on financial justification.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-78d31c2 elementor-widget elementor-widget-heading\" data-id=\"78d31c2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Example of a Lump-Sum Benefit Plan:<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9cd376d elementor-widget elementor-widget-text-editor\" data-id=\"9cd376d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>A policy with a $120,000 lump sum benefit and a 365 day elimination period will pay the $120,000 proceed to the business if the key person is disabled after a waiting period of 365 days. \u00a0After the payout of the lump sum payment, the policy ends.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a95b650 elementor-widget elementor-widget-heading\" data-id=\"a95b650\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Benefit Period<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2a260d7 elementor-widget elementor-widget-text-editor\" data-id=\"2a260d7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>As mentioned, key man disability insurance policies cover short-term situations allowing companies to \u201cbuy-time\u201d to adjust to contingencies. The benefit period is the duration of time the proceeds are payable under a covered disability. For monthly benefits plans, the benefit period is at least six months. Different benefit period options are available depending upon the insurance provider. The maximum benefit period for key-person disability insurance plans is two years.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f3e06c5 elementor-widget elementor-widget-heading\" data-id=\"f3e06c5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Occupational Class \n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b073382 elementor-widget elementor-widget-text-editor\" data-id=\"b073382\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Because of the limited availability of key man disability coverage, insurance providers are not overly aggressive in terms of the types of occupations they will insure. In most cases, white-collar professionals, salespeople, technicians, and business owners are the primary candidate. Blue-collar employees may not qualify. To determine eligibility, see the principal underwriting guidelines for business disability insurance below.<\/p><p>\u00a0<\/p>\t\t<div data-elementor-type=\"container\" data-elementor-id=\"5784\" class=\"elementor elementor-5784\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t<div class=\"elementor-element elementor-element-612d21b0 e-con-full remove-formatting spacing-medium e-flex elementor-invisible e-con e-child\" data-id=\"612d21b0\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;animation&quot;:&quot;bounce&quot;}\">\n\t\t<div class=\"elementor-element elementor-element-76355623 e-con-full e-flex e-con e-child\" data-id=\"76355623\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-6405d05 e-con-full e-flex e-con e-child\" data-id=\"6405d05\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7cbb323 elementor-widget elementor-widget-heading\" data-id=\"7cbb323\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<p class=\"elementor-heading-title elementor-size-default\">trusted by 5,000+ clients<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-516ecc79 elementor-widget elementor-widget-heading\" data-id=\"516ecc79\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<p class=\"elementor-heading-title elementor-size-default\">Get Personalized Quotes Tailored to Your Company\u2019s Needs<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-667a6b6f btn-orange-outline elementor-align-center elementor-widget elementor-widget-button\" data-id=\"667a6b6f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/webdesign.quoteplicity.com\/keyperson\/disability-insurance-quote\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Explore Your Options<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-7295cfc e-con-full e-flex e-con e-child\" data-id=\"7295cfc\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4219cdf elementor-widget elementor-widget-heading\" data-id=\"4219cdf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What is the General \u201cDefinition of Disability\u201d for a Key Man Policy? <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fac8c99 elementor-widget elementor-widget-text-editor\" data-id=\"fac8c99\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>A general definition of disability for a key man policy is if a disability occurs, key person disability insurance benefits will be paid based on the terms of the policy, as long as the key employee meets the general definition of \u201ctotal disability.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-abff526 elementor-widget elementor-widget-text-editor\" data-id=\"abff526\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Total Disability \u2013 means, solely due to injury or sickness:<\/p><ol><li>The Insured, or key person, is unable to perform the substantial and material duties of their job; and<\/li><li>The Insured is not working in any other occupation which is comparable by duties and earnings for the Owner, and<\/li><li>The requirements of the Claim are satisfied.<\/li><\/ol><p>In order to be eligible for disability, there must also be no reasonable job or worksite modifications that would allow the insured to work in the key person occupation.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a452a52 elementor-widget elementor-widget-heading\" data-id=\"a452a52\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Is the Income from a Key Person Disability Policy Taxable?\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a4591ce elementor-widget elementor-widget-text-editor\" data-id=\"a4591ce\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The benefits received from key-person disability coverage are typically not considered as income to the company.<\/p><p>The premiums that are paid by the company for key person insurance are not generally considered a tax-deductible business expense.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8a0f8c8 elementor-widget elementor-widget-heading\" data-id=\"8a0f8c8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">How Much Key Person Disability Insurance Coverage Do I Need?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7e2632d elementor-widget elementor-widget-text-editor\" data-id=\"7e2632d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Ask yourself, if your top employee was disabled for a year, what impact would that have on your business financially? In other words, just remove the key person from your day-to-day operations and assess the potential damage to determine how much key person disability coverage is needed.<\/p><p>Generally speaking, the amount of the monthly benefits available depends upon the following factors:<\/p><ul><li>Key person\u2019s income<\/li><li>Replacement costs associated with recruiting, hiring and training a capable replacement<\/li><li>Key person\u2019s contribution to the company\u2019s earnings<\/li><\/ul><p>Depending upon the occupation, up to 150% or more of the key person\u2019s income is available on a monthly benefit plan. (Note that financial documentation will be required to support these figures at the time of policy application).<\/p><p>For the lump sum plan options, three times income is a reasonable estimate of need. This amount can also vary depending upon the specific circumstances surrounding the need.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-32d9de0 e-con-full e-flex e-con e-child\" data-id=\"32d9de0\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-85a56af elementor-widget elementor-widget-heading\" data-id=\"85a56af\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Key Man Disability Policy and Coverage Options<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cae4452 elementor-widget elementor-widget-text-editor\" data-id=\"cae4452\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Ask yourself, if your top employee was disabled for a year, what impact would that have on your business financially? In other words, just remove the key person from your day-to-day operations and assess the potential damage to determine how much key person disability coverage is needed.<\/p><p>Generally speaking, the amount of the monthly benefits available depends upon the following factors:<\/p><ul><li>Key person\u2019s income<\/li><li>Replacement costs associated with recruiting, hiring and training a capable replacement<\/li><li>Key person\u2019s contribution to the company\u2019s earnings<\/li><\/ul><p>Depending upon the occupation, up to 150% or more of the key person\u2019s income is available on a monthly benefit plan. (Note that financial documentation will be required to support these figures at the time of policy application).<\/p><p>For the lump sum plan options, three times income is a reasonable estimate of need. This amount can also vary depending upon the specific circumstances surrounding the need.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-79f1c22 e-con-full e-flex e-con e-child\" data-id=\"79f1c22\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-d8e06a6 e-con-full e-flex e-con e-child\" data-id=\"d8e06a6\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ebee47f elementor-widget elementor-widget-heading\" data-id=\"ebee47f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Option 1: Principal Financial Group<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-79a1c89 elementor-widget elementor-widget-heading\" data-id=\"79a1c89\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<p class=\"elementor-heading-title elementor-size-default\">Why choose Principal\u00ae?<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0bfa813 elementor-widget elementor-widget-text-editor\" data-id=\"0bfa813\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Principal Financial has been in business for over 140 years protecting both individuals and businesses with life and disability insurance as well as other financial services solutions.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e5d4b92 elementor-widget elementor-widget-n-accordion\" data-id=\"e5d4b92\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;max_items_expended&quot;:&quot;multiple&quot;,&quot;default_state&quot;:&quot;all_collapsed&quot;,&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:400,&quot;sizes&quot;:[]}}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-2400\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-2400\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h4 class=\"e-n-accordion-item-title-text\"> Principal Financial Strength <\/h4><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-2400\" class=\"elementor-element elementor-element-c5581a5 e-con-full e-flex e-con e-child\" data-id=\"c5581a5\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-bc58af3 elementor-widget elementor-widget-text-editor\" data-id=\"bc58af3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Principal Financial maintains the following financial strength ratings:<\/p><ul><li>\u201cA+\u201d Superior with M. Best Company: second highest of thirteen financial rating levels.<\/li><li>\u201cA+\u201d Strong with S&amp;P Global: fifth highest of 20 rating levels.<\/li><li>\u201cA1 Good\u201d with Moody\u2019s Investors Service: fifth highest of 21 rating levels<\/li><li>\u201cAA-\u201cVery strong with Fitch: fourth highest of 19 rating levels<\/li><\/ul><p>For the proceeding twelve months ending December 31, 2019, Principal reported:<\/p><ul><li>$735,000,000 in assets under management, and<\/li><li>$16,200,000 in revenues (Generally Accepted Accounting Principal, GAAP), and<\/li><li>net income attributable to Principal Financial Group of $1,394.2 million adjusted for net realized (gains) losses of $174.9 million equals non-GAAP operating earnings of $1,569.1 million.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-2401\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-2401\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h4 class=\"e-n-accordion-item-title-text\"> Key Person Replacement Insurance from Principal Financial Group <\/h4><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-2401\" class=\"elementor-element elementor-element-c195e57 e-con-full e-flex e-con e-child\" data-id=\"c195e57\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ed7fdf2 elementor-widget elementor-widget-text-editor\" data-id=\"ed7fdf2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Principal Financial Group is one of the only companies offering a product in this niche disability marketplace. Their key man disability policy is called Key Person Replacement Coverage.<\/p><p>Principal Financial defines a key person as anyone critical to the livelihood of the business who is actively working-full time (30+ hours per week) and\u00a0<strong>does not own more than 50% of the company<\/strong>. Furthermore, it is a requirement that they have worked with the company for more than a year if fee-for-service or three years if a non-profit.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-2402\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-2402\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h4 class=\"e-n-accordion-item-title-text\"> Principal Financial\u2019s General Key Person Disability Underwriting Guidelines <\/h4><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-2402\" class=\"elementor-element elementor-element-9633977 e-con-full e-flex e-con e-child\" data-id=\"9633977\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-61e4623 elementor-widget elementor-widget-text-editor\" data-id=\"61e4623\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>Issue ages:<\/strong>\u00a018 to 55<\/li><li><strong>Income:<\/strong>\u00a0Minimum $30,000<\/li><li><strong>Occupation classes:<\/strong>\u00a03A\/3A-M to 5A\/5A-M, Examples may include Executive Assistant, Consultants, Top Salespeople, Medical Professionals, and Business Owners<\/li><li><strong>Elimination Periods:<\/strong><\/li><li><strong>Monthly Benefits:<\/strong>\u00a090 or 180 days;<\/li><li><strong>Lump-Sum Benefit:<\/strong>\u00a0180, 365 or 730 days<\/li><li><strong>Benefit Periods:<\/strong>\u00a0180 days up to 2 years are available depending upon the specific details.<\/li><li><strong>Maximum Issue Limits:<\/strong><\/li><li><strong>Monthly Maximum:<\/strong>\u00a0$20,000<\/li><li><strong>Lump-sum:<\/strong>\u00a0Benefit based on the calculation of three times the key employee\u2019s earned income (salary plus bonus), up to $500,000<\/li><li><strong>Combination of monthly and lump sum:<\/strong>\u00a0Up to $750,000 total<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-2403\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"4\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-2403\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h4 class=\"e-n-accordion-item-title-text\"> Additional Key Person Disability Requirements <\/h4><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-2403\" class=\"elementor-element elementor-element-a24d82a e-con-full e-flex e-con e-child\" data-id=\"a24d82a\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e3d1724 elementor-widget elementor-widget-text-editor\" data-id=\"e3d1724\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li>Works at least 30 hours a week in a critical position and has held that position for at least 12 months. The employee can only be covered for key man insurance under one business entity.<\/li><li>If the insured is an owner, the business must be in operation for at least one year for fee-for-service companies and three years for others (non-profits, etc.).<\/li><li>If both monthly and lump sum benefits are applied for, the elimination period on the monthly benefit must be less than the elimination period on the lump sum benefit.<\/li><li>Discounts of up to 20% for multiple policy purchases may be available when three or more employees with the same employer purchase Individual Disability Insurance from the same producer.<\/li><\/ul><p>Principal Financial Group\u2019s key person replacement policies are NOT available in CA, FL, MT, NY, and VT.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-2404\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"5\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-2404\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h4 class=\"e-n-accordion-item-title-text\"> Benefits of Principal Financial Group\u2019s Key Person Replacement Policy <\/h4><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-2404\" class=\"elementor-element elementor-element-5d5d063 e-con-full e-flex e-con e-child\" data-id=\"5d5d063\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-cc11a4e elementor-widget elementor-widget-text-editor\" data-id=\"cc11a4e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>Guaranteed premium rate to age 65:<\/strong>\u00a0Once in effect, the premium (cost) cannot change, and the policy can only be canceled under certain circumstances (such as the death of the employee or unpaid premiums).<\/li><li><strong>Conditionally renewable to age 65:<\/strong>\u00a0As long as the employee is still working for the business and payments are made, on-time coverage will remain active to age 65.<\/li><li><strong>Flexibility in policy design.<\/strong>\u00a0Benefits can be paid in a lump sum or a combination of monthly and a lump sum, and are generally received income tax-free.<\/li><li><strong>Policy Discounts may be available.<\/strong><\/li><li><strong>Interrupted Elimination Period:<\/strong>\u00a0Principal will combine different periods of disability to help reach the policy\u2019s elimination period.<\/li><li><strong>Recurring Disability:<\/strong><\/li><li><strong>Waiver of Premium Benefit:<\/strong>\u00a0Premiums are waived for the duration of the disability once the elimination period is satisfied. Any premiums paid during the elimination period are refunded. The elimination period is the amount of time the employee must be disabled before benefits become payable.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-b7639f9 e-con-full e-flex e-con e-child\" data-id=\"b7639f9\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-0359233 elementor-widget elementor-widget-heading\" data-id=\"0359233\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Option 2: Petersen International Underwriters<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-78a4a3d elementor-widget elementor-widget-heading\" data-id=\"78a4a3d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<p class=\"elementor-heading-title elementor-size-default\">Why choose Peterson International Underwriters?<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d699091 elementor-widget elementor-widget-text-editor\" data-id=\"d699091\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Petersen International Underwriters, backed by Lloyd\u2019s of London, specializes in high-limit, flexible disability insurance tailored to protect key individuals. Known for their expertise in unique and hard-to-insure cases, they offer customized coverage options with high benefit limits and a streamlined underwriting process, ideal for businesses needing reliable, specialized protection.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-429ead3 elementor-widget elementor-widget-n-accordion\" data-id=\"429ead3\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;max_items_expended&quot;:&quot;multiple&quot;,&quot;default_state&quot;:&quot;all_collapsed&quot;,&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:400,&quot;sizes&quot;:[]}}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-6980\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-6980\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h4 class=\"e-n-accordion-item-title-text\"> Petersen International Underwriters' Financial Strength <\/h4><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-6980\" class=\"elementor-element elementor-element-e02fc9f e-con-full e-flex e-con e-child\" data-id=\"e02fc9f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2e1cfcd elementor-widget elementor-widget-text-editor\" data-id=\"2e1cfcd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Petersen International Underwriters (PIU) operates as a Coverholder at Lloyd&#8217;s of London, a status it has held since 1982. This designation grants PIU the authority to quote, underwrite, and issue policies backed by the financial security of Lloyd&#8217;s. Lloyd&#8217;s of London maintains robust financial strength ratings:<\/p><ul><li><strong>A+ (Superior)<\/strong> with A.M. Best Company: second highest of thirteen rating levels.<div class=\"relative inline-flex items-center\"><a class=\"flex h-[22px] items-center rounded-xl px-2 text-[0.5em] !font-medium uppercase bg-[#f4f4f4] !text-token-text-secondary hover:bg-token-text-primary hover:!text-token-main-surface-secondary dark:bg-token-main-surface-secondary dark:hover:bg-token-text-primary relative top-[-0.094rem]\" href=\"https:\/\/ratings.ambest.com\/disclosurepdf.aspx?ambnum=85202\" target=\"_blank\" rel=\"noopener\"><span class=\"truncate\">A.M. Best Ratings<\/span><\/a><\/div><\/li><li><strong>AA\u2013 (Very Strong)<\/strong> with Fitch Ratings: fourth highest of 19 rating levels.<div class=\"relative inline-flex items-center\"><a class=\"flex h-[22px] items-center rounded-xl px-2 text-[0.5em] !font-medium uppercase bg-[#f4f4f4] !text-token-text-secondary hover:bg-token-text-primary hover:!text-token-main-surface-secondary dark:bg-token-main-surface-secondary dark:hover:bg-token-text-primary relative top-[-0.094rem]\" href=\"https:\/\/www.lloyds.com\/about-lloyds\/investor-relations\/ratings\" target=\"_blank\" rel=\"noopener\"><span class=\"truncate\">Lloyds Bank<\/span><\/a><\/div><\/li><li><strong>AA\u2013 (Very Strong)<\/strong> with Kroll Bond Rating Agency: fourth highest of 19 rating levels.<div class=\"relative inline-flex items-center\"><a class=\"flex h-[22px] items-center rounded-xl px-2 text-[0.5em] !font-medium uppercase bg-[#f4f4f4] !text-token-text-secondary hover:bg-token-text-primary hover:!text-token-main-surface-secondary dark:bg-token-main-surface-secondary dark:hover:bg-token-text-primary relative top-[-0.094rem]\" href=\"https:\/\/www.lloyds.com\/about-lloyds\/investor-relations\/ratings\" target=\"_blank\" rel=\"noopener\"><span class=\"truncate\">Lloyds Bank<\/span><\/a><\/div><\/li><li><strong>AA\u2013 (Very Strong)<\/strong> with S&amp;P Global: fourth highest of 20 rating levels.<div class=\"relative inline-flex items-center\"><a class=\"flex h-[22px] items-center rounded-xl px-2 text-[0.5em] !font-medium uppercase bg-[#f4f4f4] !text-token-text-secondary hover:bg-token-text-primary hover:!text-token-main-surface-secondary dark:bg-token-main-surface-secondary dark:hover:bg-token-text-primary relative top-[-0.094rem]\" href=\"https:\/\/www.lloyds.com\/about-lloyds\/investor-relations\/ratings\" target=\"_blank\" rel=\"noopener\"><span class=\"truncate\">Lloyds Bank<\/span><\/a><\/div><\/li><\/ul><p>These ratings reflect Lloyd&#8217;s exceptional financial stability and its capacity to meet ongoing insurance obligations.<\/p><p><strong>Key Person Disability Insurance Offering from Petersen International Underwriters<\/strong><\/p><p>Petersen International Underwriters provides Key Person Disability Insurance, offering flexible solutions tailored to the unique needs of businesses. This coverage is designed to protect companies from financial losses resulting from the disability of a key employee.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-6981\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-6981\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h4 class=\"e-n-accordion-item-title-text\"> General Underwriting Guidelines for Petersen International Underwriters <\/h4><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-6981\" class=\"elementor-element elementor-element-4f98ec4 e-con-full e-flex e-con e-child\" data-id=\"4f98ec4\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-0574330 elementor-widget elementor-widget-text-editor\" data-id=\"0574330\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>Issue Ages:<\/strong> Typically 18 to 64; cases beyond this range may be considered individually.<\/li><li><strong>Occupations:<\/strong> Broad eligibility, including high-risk professions and specialized roles such as surgeons, executives, and entertainers.<\/li><li><strong>Elimination Periods:<\/strong><ul><li><em>Monthly Benefits:<\/em> Options of 30, 60, 90, or 180 days.<\/li><li><em>Lump-Sum Benefit:<\/em> Typically 180 or 365 days; longer periods may be available based on specific circumstances.<\/li><\/ul><\/li><li><strong>Benefit Periods:<\/strong> Ranges from 12 to 24 months, depending on the policy structure and individual needs.<\/li><li><strong>Maximum Issue Limits:<\/strong><ul><li><em>Monthly Benefits:<\/em> Up to $100,000 per month or more, depending on the key person&#8217;s role and the potential financial impact on the business.<div class=\"relative inline-flex items-center\"><a class=\"flex h-[22px] items-center rounded-xl px-2 text-[0.5em] !font-medium uppercase bg-[#f4f4f4] !text-token-text-secondary hover:bg-token-text-primary hover:!text-token-main-surface-secondary dark:bg-token-main-surface-secondary dark:hover:bg-token-text-primary relative top-[-0.094rem]\" href=\"https:\/\/www.piu.org\/business-disability-insurance\/key-person\" target=\"_blank\" rel=\"noopener\"><span class=\"truncate\">Piu<\/span><\/a><\/div><\/li><li><em>Lump-Sum Benefits:<\/em> Up to $20,000,000 or more, with consideration for higher amounts based on the company&#8217;s requirements.<div class=\"relative inline-flex items-center\"><a class=\"flex h-[22px] items-center rounded-xl px-2 text-[0.5em] !font-medium uppercase bg-[#f4f4f4] !text-token-text-secondary hover:bg-token-text-primary hover:!text-token-main-surface-secondary dark:bg-token-main-surface-secondary dark:hover:bg-token-text-primary relative top-[-0.094rem]\" href=\"https:\/\/www.piu.org\/business-disability-insurance\/key-person\" target=\"_blank\" rel=\"noopener\"><span class=\"truncate\">Piu<\/span><\/a><\/div><\/li><li><em>Combination of Monthly and Lump-Sum:<\/em> Flexible combinations are available to address specific business needs.<\/li><\/ul><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-6982\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-6982\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h4 class=\"e-n-accordion-item-title-text\"> Additional Key Person Disability Requirements <\/h4><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-6982\" class=\"elementor-element elementor-element-3bf2787 e-con-full e-flex e-con e-child\" data-id=\"3bf2787\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2adab35 elementor-widget elementor-widget-text-editor\" data-id=\"2adab35\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>Employment Status:<\/strong> The key person should be a full-time employee, working at least 30 hours per week, and have been with the company for a minimum of 12 months.<\/li><li><strong>Business Operations:<\/strong> The company should have been operational for at least one year; exceptions may be considered based on individual assessments.<\/li><li><strong>Policy Availability:<\/strong> Coverage is available in all 50 U.S. states, the District of Columbia, and Canada. However, not all products are available in all states or countries.<div class=\"relative inline-flex items-center\"><a class=\"flex h-[22px] items-center rounded-xl px-2 text-[0.5em] !font-medium uppercase bg-[#f4f4f4] !text-token-text-secondary hover:bg-token-text-primary hover:!text-token-main-surface-secondary dark:bg-token-main-surface-secondary dark:hover:bg-token-text-primary relative top-[-0.094rem]\" href=\"https:\/\/www.piu.org\/\" target=\"_blank\" rel=\"noopener\"><span class=\"truncate\">Piu<\/span><\/a><\/div><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-6983\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"4\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-6983\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h4 class=\"e-n-accordion-item-title-text\"> Benefits of Petersen\u2019s Disability Policy <\/h4><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-6983\" class=\"elementor-element elementor-element-be63068 e-con-full e-flex e-con e-child\" data-id=\"be63068\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a500295 elementor-widget elementor-widget-text-editor\" data-id=\"a500295\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>Guaranteed Premium Rates:<\/strong> Premiums are guaranteed for the initial five-year term, providing cost stability.<\/li><li><strong>Conditional Renewability:<\/strong> Policies are conditionally renewable up to age 65, subject to underwriting at each renewal term.<\/li><li><strong>Flexible Policy Design:<\/strong> Options for monthly benefits, lump-sum payments, or a combination of both, tailored to the business&#8217;s specific needs.<\/li><li><strong>Interrupted Elimination Period:<\/strong> Allows for the combination of different periods of disability to satisfy the elimination period.<\/li><li><strong>Recurring Disability Benefit:<\/strong> If a disability recurs within six months of returning to work, the elimination period may be waived for the subsequent disability.<\/li><li><strong>Presumptive Disability Benefit:<\/strong> In cases of severe disabilities (e.g., loss of sight, hearing, speech, or use of limbs), the elimination period is waived, and benefits are paid for the full benefit period or as long as the loss persists.<\/li><\/ul><p>For more detailed information or to discuss specific coverage needs, <a href=\"\/contact\">contact us<\/a> directly.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-8b3308f e-con-full e-flex e-con e-child\" data-id=\"8b3308f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-f50d1a8 elementor-widget elementor-widget-heading\" data-id=\"f50d1a8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Much Does a Key Person Disability Insurance Plan Cost?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4678541 elementor-widget elementor-widget-text-editor\" data-id=\"4678541\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Key person disability insurance is very limited in terms of companies offering the product. Because of its \u201cniche\u201d status, short-term coverage period, ability to customize, and limited availability, there are not many comparison options. The key person disability insurance quotes can vary broadly because each plan can have its unique requirements.<\/p><p><strong>The main factors affecting the cost of key person disability coverage are:<\/strong><\/p><ul><li>Age<\/li><li>Gender<\/li><li>Occupation<\/li><li>Tobacco status<\/li><li>State of residence<\/li><li>Policy structure<\/li><li>Discounts<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-547b8d9 elementor-widget elementor-widget-heading\" data-id=\"547b8d9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Principal Financial Group-Key Person Replacement Disability Rates<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7084182 elementor-widget elementor-widget-heading\" data-id=\"7084182\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Here are some sample monthly disability insurance premiums for a $200,000 total benefit<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a2d23fe elementor-widget elementor-widget-text-editor\" data-id=\"a2d23fe\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Assumptions: A Portfolio Manager earning $100,000 annual salary, lump-sum payout, 180-day elimination period, nonsmoker in good health.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-73eb122 elementor-widget elementor-widget-html\" data-id=\"73eb122\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<table class=\"markup\">\n  <caption>$200,000 Life Insurance Rates by Age and Gender \u2013 Principal Financial Group<\/caption>\n  <thead>\n    <tr>\n        \n      <th scope=\"col\">Age<\/th>\n      <th scope=\"col\">Coverage<\/th>\n      <th scope=\"col\">Male<\/th>\n      <th scope=\"col\">Female<\/th>\n    <\/tr>\n  <\/thead>\n  <tbody>\n    <tr>\n        <th scope=\"row\">30<\/th>\n        <th scope=\"row\">$200,000<\/th>\n      \n      <td>$60<\/td>\n      <td>$125<\/td>\n    <\/tr>\n    <tr>\n        \n      <th scope=\"row\">40<\/th>\n      <th scope=\"row\">$200,000<\/th>\n      <td>$105<\/td>\n      <td>$193<\/td>\n    <\/tr>\n    <tr>\n      <th scope=\"row\">50<\/th>\n      <th scope=\"row\">$200,000<\/th>\n      <td>$203<\/td>\n      <td>$263<\/td>\n    <\/tr>\n  <\/tbody>\n<\/table>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9e36733 elementor-widget elementor-widget-heading\" data-id=\"9e36733\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Here are some sample monthly disability insurance premiums for a $300,000 total benefit<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c6b593c elementor-widget elementor-widget-text-editor\" data-id=\"c6b593c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Assumptions: A Paralegal with $100,000 annual salary, lump-sum payout, 180-day elimination period, non-tobacco in good health.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8c97ee2 elementor-widget elementor-widget-html\" data-id=\"8c97ee2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<table class=\"markup\">\n  <caption>$300,000 Life Insurance Rates by Age and Gender \u2013 Principal Financial Group<\/caption>\n  <thead>\n    <tr>\n        \n      <th scope=\"col\">Age<\/th>\n      <th scope=\"col\">Coverage<\/th>\n      <th scope=\"col\">Male<\/th>\n      <th scope=\"col\">Female<\/th>\n    <\/tr>\n  <\/thead>\n  <tbody>\n    <tr>\n        <th scope=\"row\">30<\/th>\n        <th scope=\"row\">$200,000<\/th>\n      \n      <td>$60<\/td>\n      <td>$125<\/td>\n    <\/tr>\n    <tr>\n        \n      <th scope=\"row\">40<\/th>\n      <th scope=\"row\">$200,000<\/th>\n      <td>$105<\/td>\n      <td>$193<\/td>\n    <\/tr>\n    <tr>\n      <th scope=\"row\">50<\/th>\n      <th scope=\"row\">$200,000<\/th>\n      <td>$203<\/td>\n      <td>$263<\/td>\n    <\/tr>\n  <\/tbody>\n<\/table>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-362a347 elementor-widget elementor-widget-text-editor\" data-id=\"362a347\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>All key person disability insurance quotes are for general reference only and are subject to medical and financial underwriting. Quotes are a guideline only, and actual rates may vary significantly.<\/p><p>The best way to determine the right amount of key person disability insurance, as well as the premium cost, is to obtain a quote directly from a\u00a0disability insurance specialist.<\/p>\t\t<div data-elementor-type=\"section\" data-elementor-id=\"5761\" class=\"elementor elementor-5761\" data-elementor-post-type=\"elementor_library\">\n\t\t\t<div class=\"elementor-element elementor-element-f0db84b e-flex e-con-boxed e-con e-parent\" data-id=\"f0db84b\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-12f48dd btn-orange-outline elementor-align-center elementor-widget elementor-widget-button\" data-id=\"12f48dd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/webdesign.quoteplicity.com\/keyperson\/disability-insurance-quote\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">get a disability insurance quote<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-ef8b449 e-con-full e-flex e-con e-child\" data-id=\"ef8b449\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2aaeeb1 elementor-widget elementor-widget-heading\" data-id=\"2aaeeb1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Do You Qualify for Key Person Disability Coverage?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9c688be elementor-widget elementor-widget-text-editor\" data-id=\"9c688be\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>To qualify for a key person disability insurance policy, the insured must be in good health at the time of policy application. Also, before a key man disability insurance policy is approved, it must be proven that the employee is critical to the company\u2019s success and that his or her talents and skills are unique.<\/p><p>The application for key person disability coverage will usually ask some or all of the following questions:<\/p><ul><li>Is the key person an owner of the firm? (If so, what is his or her\u00a0percentage of ownership?)<\/li><li>What does this person do that another person cannot do?<\/li><li>What financial loss would the company suffer if this person were disabled?<\/li><li>How long has this person been working for the company?<\/li><li>What was the individual\u2019s income over the last three years (including salary, bonuses, or commissions)?<\/li><li>What is the existing coverage currently in force on the key person in which the company is the beneficiary? (i.e., life insurance or other disability coverage)<\/li><li>Is the key person or the business a party to any legal proceedings at this time? (If so, provide details.)<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6800853 elementor-widget elementor-widget-heading\" data-id=\"6800853\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Key Person Disability Insurance Underwriting<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c96930a elementor-widget elementor-widget-text-editor\" data-id=\"c96930a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Assessing the risk for a disability insurance policy is a bit more stringent than for key man life insurance. The chief factors are:<\/p><ul><li>Occupation- The duties of the specific occupation dictates the likelihood of disability. As mentioned previously, key man disability coverage is only available for select occupations and these are the types of jobs that tend to be professional or technical.<\/li><li>Medical History-Since disability underwriting is more concerned with potential illnesses, past medical history is viewed very carefully. Morbidity is the measure of potential illness in an individual or group and is a significant concern to all disability insurance providers.<\/li><li>Income-Earnings play a large part in determining the amount of policy benefit available and to some extent \u201cif\u201d a policy is available.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-286f185 e-con-full e-flex e-con e-child\" data-id=\"286f185\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ebd700b elementor-widget elementor-widget-heading\" data-id=\"ebd700b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How to Apply for Key Man Disability Coverage\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-630623c elementor-widget elementor-widget-text-editor\" data-id=\"630623c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Applying for key person disability coverage is much like the process of applying for a key man life policy. There is a formal application required for every policy. Each policy covers only one key person. Information on both the \u201cinsured\u201d person as well as the business must be provided.<\/p><p>For a detailed breakdown of the traditional process from the decision to buy a policy to the actual policy approval and acceptance read\u00a0<a href=\"#link-needed\" target=\"_blank\" rel=\"noopener noreferrer\">The Process of Applying for Key Man Insurance.<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9ca4119 elementor-widget elementor-widget-text-editor\" data-id=\"9ca4119\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2>How to Compare Disability Insurance Policies on an \u201cApples to Apples Basis\u201d<\/h2>\n<p>When comparing disability insurance policies, make sure that the illustrated benefits are the same. The elimination period, benefit period and monthly benefits should always be equal to provide an accurate comparison. With policy benefits being equal, premiums can be carefully evaluated and potential policy feature variations can accurately be identified. If there is a large discrepancy in the prices of competing policies, there is a strong likelihood that the higher priced disability insurance policy has more comprehensive protection. By comparing policies on an \u201capples to apples basis\u201d, the more favorable policy provisions can easily be uncovered.<\/p>\n<h3>Review Policy Provisions and Their Costs<\/h3>\n<p>When considering disability insurance policies it is critical to review specific policy provisions with their costs in mind. If there is a big discrepancy in costs, you can be assured that the provisions are likely not the same. The more attractive and or flexible the policy provision or benefit the higher the cost will be. In most cases, higher prices reflect more liberal provisions. Comparisons of policy provisions and costs should always be made in light of your goals and needs.<\/p>\n<h3>Don\u2019t Compare Disability Insurance Policies on Price Alone<\/h3>\n<p>Disability income insurance is not a commodity and therefore should not be compared based on price alone. As just mentioned, with disability insurance policies, the more comprehensive the benefits the higher the costs. It can be said another way as well, the lower the policy costs the less favorable the benefits. The main point is to evaluate policies based on your own objectives as sometimes more liberal benefits do not warrant increased premiums.<\/p>\n<h3>Will a Company Provide a More Favorable Occupational Class?<\/h3>\n<p>Each disability insurance provider has their own occupational class guidelines they use to determine risk of disability. The less hazardous the specific job duties of the occupation the more favorable the policy language and potential benefits available. By identifying these specific job duties and comparing the occupational class guidelines of each insurance company, you may be able to identify an opportunity to obtain a better occupational class.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-06b7af8 e-con-full e-flex e-con e-child\" data-id=\"06b7af8\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-b9e7432 elementor-widget elementor-widget-heading\" data-id=\"b9e7432\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Alternatives-Business Overhead Insurance\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-10e4964 elementor-widget elementor-widget-text-editor\" data-id=\"10e4964\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>There are\u00a0<a href=\"#link-needed\">disability insurance income alternatives<\/a>. One of them is overhead insurance, which is disability insurance on the owner of a business that will reimburse the business for covered expenses IF the business owner becomes disabled.<\/p>\n<p>There are some situations where key person insurance just isn\u2019t a good \u201cfit.\u201d In these cases, it may be necessary to consider business overhead insurance. Business overhead, which is also frequently referred to as overhead expense insurance, can be life-saving to a business if an owner is temporarily down.<\/p>\n<p>This type of coverage reimburses the company for various expenses if the owner becomes disabled. Covered expenses may include rent, utilities, office supplies, inventory, equipment, non-owner salaries, and even other insurance premiums.<\/p>\n<p>Some overhead coverages offer a \u201cSalary Replacement Rider\u201d\u00a0 that reimburses the business for costs associated with hiring a training a capable replacement. While not exactly the same as key man disability insurance, overhead coverage with a \u201cSalary Replacement Rider\u201d can provide funds to pay the salary of a replacement for a disabled owner.<\/p>\n<h4><a href=\"#link-needed\" target=\"_blank\" rel=\"noopener noreferrer\">Read more about business overhead insurance here<\/a>.<\/h4>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-37ef470 e-con-full e-flex e-con e-child\" data-id=\"37ef470\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-f49211a elementor-widget elementor-widget-heading\" data-id=\"f49211a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Summary<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4038130 elementor-widget elementor-widget-text-editor\" data-id=\"4038130\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>If you own or operate a small business, there is probably at least one member of your team who is critical to the company\u2019s survival. An unexpected disability to this person could result in significant financial challenges to the business going forward.&nbsp;Keyman disability insurance&nbsp;is a specialty type of policy designed to protect the business in the short-run if a serious situation arises. If your organization relies on one or two people, investing in key person protection coverage in case of a disability is essential.<\/p>\n<p>We specialize in assisting organizations of all sizes with protecting their most valuable assets \u2013 their people \u2013 with key man disability insurance. In most cases, the cost of a key person insurance policy is negligible and not too difficult to obtain.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Imagine if your top salesperson, lead project manager, or primary technician were suddenly unable to work for an extended period. How would your business handle the impact on sales, operations, and client relationships?<\/p>\n","protected":false},"author":2,"featured_media":2474,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[13],"class_list":["post-476","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-disability-insurance","tag-pillar"],"_links":{"self":[{"href":"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-json\/wp\/v2\/posts\/476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-json\/wp\/v2\/comments?post=476"}],"version-history":[{"count":263,"href":"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-json\/wp\/v2\/posts\/476\/revisions"}],"predecessor-version":[{"id":6499,"href":"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-json\/wp\/v2\/posts\/476\/revisions\/6499"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-json\/wp\/v2\/media\/2474"}],"wp:attachment":[{"href":"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-json\/wp\/v2\/media?parent=476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-json\/wp\/v2\/categories?post=476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/webdesign.quoteplicity.com\/keyperson\/wp-json\/wp\/v2\/tags?post=476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}