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Key-Person Disability
When a key employee is disabled the loss is experienced in two ways.
The first is the loss of profits that would have been attributed to
the key employee. The second is the cost associated with finding a
replacement. Blauch and Associates offers a solution to these
financial problems. Key-Person Disability coverage is designed to
provide your business with income during the disability of a key
employee.
How
Key-Person Disability Income Works
Upon the disability of the key employee, the employer receives funds
for the loss of the key employee. The funds can be used to replace a
portion of business profit lost to the key employee's disability or
to attract and train a replacement for the key employee.
Conditionally Renewable with Guaranteed Premiums
Once you enter into a Key-Person Disability Contract with Blauch and
Associates, the contract cannot be changed unilaterally by the
Company. The policy can be renewed on each policy anniversary up to
age 65 provided the Insured is working full-time in the business and
the Insured owns some, but not more than 50%, of the business.
Total Disability
If the Insured is totally disabled, he or she is unable to perform
the principal duties of his or her regular occupation. If one or
more principal duties can be performed, the Insured is not totally
disabled and may qualify as partially disabled.
Partial Disability
Partial disability occurs when the Insured is unable to perform one
or more principal duties that accounted for at least 20% of the time
spent at the regular occupation before disability began. Or, if the
Insured has at least a 20% loss of time spent at the regular
occupation. The benefit for partial disability is paid at 50% of the
Full Benefit for up to six months of partial disability.
Replacement Benefit
This benefit is paid to an employer, in lieu of other benefits, when
a replacement is hired to perform the Insured's occupation if:
- The Insured is totally disabled and no longer
works in the owner's business in any capacity
- The Insured's disability, total and partial
combined, has lasted at least six months.
- The Owner has hired a replacement for the Insured.
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There is at least one month remaining before the end of the
Maximum Benefit Period.
Change of Insured
The Owner may change the Insured under the policy by paying the
required costs and meeting any other conditions.
Waiver of Premium
Premiums are waived during disability from 90 days after the start
of disability or from the Beginning Date, if sooner. Premiums due
and paid during this time will be refunded. If premiums are waived
on a policy anniversary, an annual premium will be waived, and
premiums are waived beyond the Maximum Benefit Period if the Insured
is still disabled.
The
Waiver of Premium Benefit is subject to the limitation while the
insured is outside the United States.
Presumptive Total Disability Benefit
You are automatically considered totally disabled for specified
disabilities. The Full Benefit starts with the date of the loss and
is payable for as long as the loss continues during the Maximum
Benefit Period. Presumptive disability benefits are payable even if
you are able to work.
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