Insure your hands if you depend on your income


Have you ever wondered what would happen if you hurt your hands and can’t work? You’re probably concerned about it, if you’re reading this. You’ve come to the right place!

As an independent broker, I have my client’s best interest first and foremost and I am working with many (hundreds of) insurance companies (including Lloyd’s) to be able to compare and find the best coverage for my clientele. I can help clients in almost any industry and occupations, a list of insurable occupations is available here.

When it comes to hands insurance, very few insurance companies are available that offer this type of coverage. If you search the internet for hands insurance, you’ll probably find my other blog at “LifeGuy.com” and not many other results, certainly not many companies that offer this. That’s because body parts insurance is a very specialized niche market and sometimes there are BETTER alternatives that are either cheaper, or that offer more flexibility. Keep reading to understand why.

“Hands-only” Insurance option

Let’s say that you’re looking to insure your hands for $500,000 in case of an injury that causes loss of income. You could get a plan that covers just your hands, for about $2-300 monthly (this is just an example for a female musician at age 30; the rate varies based on your age, benefit amount, occupation, etc).

If you injure your hand(s) and can’t work for a while, the waiting period kicks in. Are you going to recover any time soon? If you don’t recover in 12 months, a benefit will be paid to you. If however you’re able to recover and get back to work before the 12 month wait, no benefit is payable.

 

Now, for the BETTER plan:

INCOME PROTECTION covering full-body and your ability to work, protecting against ANY medical issue, accident or illness

Yes, hands-only insurance is great, but it has some obvious limitations:

  • 12 months waiting period before a benefit is paid;
  • if you recover in 12 months or less no income is received;
  • it does not cover your arms, elbow, shoulder, back, legs, etc.
  • What if you hurt your shoulder causing you to lose income due to inability to work, but your HAND IS FINE? No benefit paid either.

The BETTER plan is a full-body policy, that protects your ability to work and earn an income, NO MATTER WHAT MEDICAL CONDITION, including ALL accidents or illnesses that cause a partial or full loss of income. Which means that even back issues, vision, migraines etc. are covered if they are causing you to lose revenue. Or pneumonia, cancer, heart problems, even depressionalcoholism, you name it. If you find yourself out of work for 1 month or longer, you can then start receiving a monthly check from a full-body disability insurance policy as long as you’re experiencing a loss of income, up to the maximum benefit period allowed by the policy you purchased.

The kicker – the full-body policy cost is about the same (or cheaper) as the hands-only policy, plus you now have more options of insurance companies to choose from, depending on the policy features and coverages you’re looking for, waiting periods and benefit periods.

So, to compare the cost let’s take a full-body disability insurance that may pay $10,000 monthly benefit if you can’t work. In a year that’s $120,000 of benefit from the insurance policy, if you lost your income due to ANY medical reason. If you’re out of work from YOUR MAIN OCCUPATION for 5 years or longer, you’d collect $600,000 of benefit during this time. The cost? Under $200 monthly, for the same 30 year-old artist in the previous example. Why cheaper, you ask? Mainly because the benefit is paid in monthly installments and if you happen to recover sooner, the insurance company is not on the hook for the full benefit up front.

 

Now, as your agent I will help you find the best policy for you, your occupation and income level, at the lowest cost. You save A LOT if you pay in advance full annual premium or even choose a single premium (you can get 5 years of coverage for 4 years premium – up to 20% discount with some companies!).

 

How hard is it to get the coverage? 

It’s not hard, but expect that the insurance companies will do their due diligence to make sure they’re not attracting any frivolous claims. Depending on the amount of benefit you’re looking for (monthly benefit, or lump sum), this is what you should expect:

  • fill out an application (ask me for the paperwork, after you see the rates and like the benefits)
  • prove insurability: – you have to be insurable. You can’t insure your hands if you’re already unable to work. If you had some health issues in the past, expect to have an exclusion on your policy on that body part. The exclusion can be temporary (12-24 months) or permanent, depending on the severity and recency. Even if you are offered a policy with an exclusion on one of the body parts, or for certain illness, that policy will still cover ALL OTHER body parts and all other possible illnesses or injuries.
  • medical underwriting usually consists of a para-medical exam: height, weight, blood pressure, blood test, urinalysis, possible EKG test. Smaller benefit amounts may not need all these tests. This could be done in the comfort of your home, or at one of insurance company’s affiliated medical facilities.
  • financial insurability: you need to have a proven and active income, in order to be insurable. Tax returns are expected to be necessary, showing at least 2 years of positive net revenue. If you don’t show a positive income on your tax returns, then there’s nothing to insure from the perspective of the insurance company.
  • After all medical and financial underwriting is done, you’ll receive an approval offer, which can match the initial quoted benefit and premium, or be modified depending on what was discovered during underwriting.
  • Once you accept the offer and pay the first premium, a policy is mailed to you.
  • If you have ANY questions, I will be your first line of help or you can call the toll-free number of the insurance company.
  • The final step, let the peace of mind take over you, knowing that you’ll be OK no matter what happens to you!  🙂

 

I’m available for free consultations and plan comparisons. Give me a call today to chat. My personal cell# is (239) 466-4466 or email Daniel@CelebrityInsurer.com

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