Risk Management Services
Income Protection Planning
A 35-year-old earning $250,000 has over $7.5 million in future lifetime income. A disability that prevents you from working for even 2–3 years can permanently derail your retirement plan. We design layered income protection strategies that replace your full earnings — not just a fraction of them.
1 in 4
Workers become disabled before retirement
34 Months
Average long-term disability duration
60%
Max group DI benefit (taxable)
$7.5M+
Lifetime income risk at age 35 earning $250K
The Five Layers
A Complete Income Protection Architecture
Short-Term Disability
Weeks 1–26
60–70% of incomeCovers injuries, illnesses, and recovery periods typically lasting up to 6 months. Often employer-provided, but benefit amounts are frequently inadequate for high earners. Acts as the first line of defense while long-term coverage kicks in.
Long-Term Disability (Own-Occupation)
Month 7 through Age 65
60–70% of incomeThe cornerstone of income protection. Own-occupation definition means: if you can't perform the specific duties of YOUR profession, the policy pays — even if you could do other work. Non-cancellable and guaranteed renewable terms lock in your rates and benefits permanently.
Supplemental Disability Insurance
Month 7 through Age 65
Fills group DI gapHigh earners with group DI face a benefit cap — group policies rarely cover more than $10K–$15K/month regardless of income. Individual supplemental coverage bridges the gap between group benefits and actual income replacement needs.
Business Overhead Expense (BOE)
Up to 24 months
Business operating costsBusiness owners have a dual vulnerability: lost personal income AND ongoing business fixed costs. BOE policies pay rent, employee salaries, utilities, professional fees, loan payments, and other overhead expenses — keeping your practice or firm viable during your disability.
Disability Buyout Insurance
Upon qualifying disability
Funds partner buyoutIf a business partner becomes permanently disabled, this policy provides the liquidity to buy out their ownership interest — preventing deadlock, forced liquidation, or the obligation to carry a non-contributing partner for years.
Policy Features
Critical Riders & Policy Features
Own-Occupation Definition
You are disabled if you cannot perform the material duties of your specific occupation — regardless of whether you could work in another field. The most favorable and valuable definition available.
COLA Rider (Cost of Living Adjustment)
Benefit increases annually — typically 3% compound — during a claim to maintain purchasing power over a multi-year disability. Essential for extended benefit periods.
Future Increase Option (FIO)
Allows you to purchase additional coverage as income grows — without new medical underwriting. Critical for young professionals whose income will rise significantly.
Residual Disability Rider
If you return to work part-time or at reduced capacity, this rider pays a proportional benefit based on income loss — rather than requiring total disability. Supports a graduated return to work.
Non-Cancellable & Guaranteed Renewable
The insurer cannot cancel, change the terms, or raise premiums as long as you pay premiums. Locks in your coverage and rates permanently regardless of health changes.
Student Loan Repayment Rider
An additional monthly benefit specifically designated for student loan payments — critical for physicians, attorneys, and other professionals with significant educational debt.
By Profession
Income Protection Considerations by Professional Type
Physicians & Dentists
Medical training represents $500K+ in educational investment. Own-occupation definition ensures specialty-specific protection — a surgeon who loses the use of their hands is fully disabled even if they could work in another field.
Attorneys & CPAs
High income + high student loans = outsized disability risk. Group coverage covers only a fraction of actual income. Individual own-occupation coverage fills the gap and covers partnership distribution income.
Business Owners
Triple exposure: personal income, business overhead costs, and partner buyout risk. Requires layered coverage across personal DI, BOE, and disability buy-sell policies.
Corporate Executives
Bonus and equity compensation are typically excluded from group DI calculations. Individual supplemental policies specifically designed to cover total compensation — not just base salary.
Financial Professionals
Commission-based income is often entirely excluded from group disability coverage. Individual policies can be structured to cover gross earnings from all sources.
Protect Your Income
Design Your Income Protection Strategy
We'll calculate your true income exposure and build a layered protection plan that replaces your full earnings — not just a fraction.
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Speak with an Advisor
Have questions about this topic or how it applies to your financial situation? Our team is available to provide personalized guidance.