Disability Insurance

Cheerful loving young couple using laptop and analyzing finances

June 1 2026

The Mid-Year Insurance Audit: A Value-Add Your Clients Will Thank You For

adivney@barnumfg.com All Posts, Disability Insurance, Estate Planning, Life Insurance, Lifestyle

Every June, your clients are halfway through the year and most of them have no idea their coverage might already be out of date.

A mid-year insurance audit is one of the easiest ways to demonstrate ongoing value, deepen relationships, and uncover opportunities that wouldn’t surface any other way.

Here’s how to make it a natural part of your client conversations this summer.

Why Mid-Year Is the Right Time

The end of the year gets all the attention with tax planning, open enrollment, and year-end reviews. But a lot happens between January and June. People get married, have kids, change jobs, get promoted, start businesses, or buy homes. By the time December rolls around, those changes are old news and the window to act has often closed.

Reaching out in June positions you as proactive, not reactive. It also tends to catch clients at a moment when they’re thinking about the second half of the year, making them more receptive to planning conversations.

A Simple Audit Framework

A focused review across four areas is enough to surface most issues:

Life Insurance: Has their income, net worth, or family situation changed? Is their coverage still aligned with what they’d need to replace income or cover obligations?
Disability Income: Are they still covered if they can’t work? Have bonuses or promotions increased their income beyond what their current policy covers?
Business Coverage: For business-owner clients, do they have key person coverage, buy-sell funding, or overhead expense protection in place and is it still current?
Beneficiary Designations: This one gets overlooked constantly. Divorce, remarriage, new children all warrant a review.

How to Position the Conversation

The framing matters. This is a service touchpoint. Something as simple as:

“I like to do a quick mid-year check-in with clients to make sure nothing’s fallen through the cracks on the protection side. It usually only takes 20 minutes and it’s one of those things that’s easy to put off but really worth doing.”

Most clients appreciate it. Some will raise issues you didn’t know existed. And a few will reveal changes that open meaningful planning conversations.

The Bottom Line

The advisors who retain clients long-term are the ones who show up consistently and make clients feel looked after. A mid-year insurance audit is one of the simplest ways to do exactly that.

May 17 2024

Choosing the Right Disability Insurance Plan: A Comprehensive Guide

kvidal@barnumfg.com All Posts, Disability Insurance

Have you ever wondered how you would manage if you suddenly fell ill or were in a debilitating accident? What would you do if you’re unable to earn a living or financially take care of yourself and your loved ones?

According to data published as of 2021, 13% of adults have at least one disability. Only 31.1% of people with disabilities are in active employment compared to 74.8% of people without disabilities, increasing their exposure to financial hardships.

Disability insurance (DI) provides a safety net, enabling you to meet your financial obligations as you recuperate or forebear with disability. It’s an insurance policy that supplements between 50% and 80% of your income when you cannot work or earn because of disability.

What to Consider When Choosing a DI Plan

Benefit Amount

The insurance benefit from a DI plan is 60% to 70% of income earned 5 to 18 months before your first claim. Most DI insurers cover up to 60% of the insured income. It’s crucial to consider your ongoing expenses and desired lifestyle after a disability when choosing a benefit amount. Consider your debts, dependents, benefit duration, renewability provision, elimination period, and future increase to ensure your finances meet all your developing financial obligations after disability.

Elimination Period

The period between insurance issuance and benefit claim after illness or injury is the elimination period. Insurers use this period to ascertain if you meet the benefit criteria. You’re liable for your medical expenses and lost income during this duration.

It typically occurs between 30, 60, 90, or 365 days. The shorter the duration, the higher the premium cost. A short duration means the insurer starts paying benefits sooner, translating to increased risks for them as claims get shelled faster. Consider your financial situation and risk tolerance. A long elimination period is beneficial if you have an emergency fund or are comfortable taking on risks.

Occupation Type

Disability coverage language varies between insurers. Some insurance companies provide an “own occupation” plan, which defines total disability as a condition preventing the insured from performing their duties in their regular job, even though they can seek another type of employment. On the other hand, some insurers provide “any occupation” coverage, which defines total disability as inability to work.

Own-occupation DI is generally more expensive but offers better protection, especially for specialized professions. For instance, a surgeon can become disabled if they develop tremors, making it impossible to perform operations. The own-occupation policy provision does not disqualify them when they can still work in diagnostic medicine. However, the any-occupation coverage disqualifies them if they can still earn a living by performing any task in their occupation.

Your occupation determines the type of plan you get. Construction workers may need an own-occupation coverage because of the risks involved in their line of work. Any-occupation insurance policy is perfect for employees in specialized fields involving education, training, and experience.

Future Earning Potential

You may also want to consider a DI with a future purchase option rider, especially if you’re young with a rising earning potential or in a fast-growing field. Increasing your benefits adds a layer of protection to your finances, securing your future according to your rising income.

Additional Considerations

Other factors to consider when choosing a DI include cost-of-living adjustments. Inflation can reduce the value of your benefits. Therefore, choosing a policy with provisions for future adjustments is essential. You can also consider residual benefits riders to supplement a portion of your income in case of partial disability significantly reducing your income.

Shopping for Disability Insurance

Due diligence is essential when looking for DI. Aside from personal considerations, get quotes from multiple insurers to compare plans and pricing. Work with a financial advisor or insurance broker to understand the fine print for every potential DI and personalized guidance resonating with your present and future financial obligations and objectives.

Get The Appropriate DI Plan Today

Choosing the right DI plan requires research and financial insights. Understand your current and future financial obligations, DI prerequisites, and how your profession affects your benefits to choose a policy suitable for your conditions. It’s also crucial to compare plans to get cost-effective coverage. DI is an effective financial safety net in case of disability. Talk with a financial professional at Barnum Financial Group for tailored guidance today.

May 17 2024

Disability Insurance in Your Financial Plan

kvidal@barnumfg.com All Posts, Disability Insurance

Save your money. Stick to a budget. Invest in a 401K. Plan for your children’s education. Prepare for retirement. As we all work in our various career fields, these are the phrases we hear consistently. Building a financial plan is essential in preparing for your future and the future of your loved ones, but where does Disability Insurance (DI) fit into those plans? With the month of May being Disability Insurance Awareness Month, it’s the perfect time to evaluate your financial plan and see if disability insurance is right for you.

For most people, disability insurance is a box they check when they’re hired by an employer as they opt for the basic group plan. But serious consideration should be given to obtaining your own individual disability insurance plan. You get what you pay for, but it’s very important to know what your plan covers at work, features included, and to know if you are also being covered if you are heavily compensated in bonus/commission. With life insurance, the choice is a simple one. When we pass away, we all want to make sure our loved ones are taken care of and that’s why life insurance makes sense. But DI protects us from financial losses throughout our life, whether its an accident or an illness, 43% of all people aged 40 will have a long-term disability by the age of 65.[1]

There are two different types of Disability Insurance Coverage:

STD (Short-Term Disability) Policy
- Waiting period of 0-30
- Maximum benefit period of no longer than 2 years
LTD (Long-Term Disability) Policy
- Waiting period of several months
- Maximum benefit period of a few years to retirement age (65, 67, 70)
- 90 days is the typical waiting period for a long-term disability that can stack onto a short-term policy

There are many reasons to include disability insurance in your financial plan, but none are more important than this: It’s all about protecting your income. 88% of disability insurance claims are because of illness.[2] Obviously, we cannot predict our health as we grow older. We also cannot predict or plan to have a car accident, but we don’t think twice about obtaining car insurance. If you became too sick or hurt to work, why are we not insuring your most valuable asset? Your income.

A plastic surgeon who develops Dupuytren’s Disease, which causes the fingers to be pulled towards the palm, is unable to operate. A teacher with anxiety develops consistent migraines that impede their ability to instruct their students. A bus driver is diagnosed with cancer, which keeps them out of their job for several months. With disability insurance coverage, these people could protect their lost income from being unable to perform their jobs.

Another facet of disability insurance is the difference between Any-Occupation (Any-Occ) and Own Occupation (Own-Occ) policies. With Any-Occ, a person only qualifies for disability insurance payments if their disability prevents them from performing any occupation. Own-Occ deals with disabilities that prevent a person from performing their specific job. Like the surgeon, with a disabled hand, who cannot perform operations. They would be able to take a teaching position at a university. Disability insurance will pay the surgeon for being unable to perform their own job, while still mainlining employment in another field of study. There are also features to mitigate the risk of a drop in income if you were to become partially disabled and had a loss of time and duties which would result in a loss of income.

As mentioned above, your employer probably offers you group disability insurance coverage and while that’s a form of protection, it’s not your best form. Obtaining your own, individual disability coverage, subsidizes the gap in coverage that any group plan with offer. It also provides you with other incentives. An individual plan stays with you throughout your life. It will follow you if you happen to obtain employment at another company. Disability insurance benefits are also tax-free since you purchased your individual plan with after-tax dollars as opposed to group plans, which are taxable, since your payments are taken out of your gross wages by your employer.

If you’re thinking about disability insurance or this article has brought up more questions on the subject for you, the financial planners at Barnum Financial Group can easily walk you through those answers and guide you in the right direction if looking to purchase an individual disability insurance coverage plan.

Remember. Disability Insurance is about protecting your income.

[1] https://www.iii.org/main-responsive/disability-income

[2] https://disabilitycanhappen.org/disability-statistic/