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Old 06-01-2015, 09:14 AM   #1
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Tennesseehorn on Disability Insurance for Agents
 
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Disability Insurance for Agents Disability Insurance for Agents
Hi,

I need to find a company to write/buy myself DI. I understand the elimination period (90, 180 days...) but having only been actively selling in the Insurance industry for about two years how do you determine your monthly benefit? My tax records don't show a lot of actual net income yet due to marketing expenses and other write-offs. What do the companies look at to see what you are able to qualify for? I would like about $3,000 - $4,000/m of benefit which should be about 60% of what I am grossing at the moment. I am also 55 so a lot of companies won't give me 10 years or to 65.

Thoughts and what is everyone else out there doing for DI?

Thanks
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Old 06-01-2015, 09:24 AM   #2
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Thad.Sipple on Disability Insurance for Agents
 
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Disability Insurance for Agents
Back when I sold it, you could get as much as your willing to pay for. It was not cheap though, and make sure if you want sickness it's added.

Aflac
Pennsylvania Life

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Combined........................
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Old 06-01-2015, 09:59 AM   #3
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Disability Insurance for Agents Re: Disability Insurance for Agents
Originally Posted by Tennesseehorn View Post
Hi,

I need to find a company to write/buy myself DI. I understand the elimination period (90, 180 days...) but having only been actively selling in the Insurance industry for about two years how do you determine your monthly benefit? My tax records don't show a lot of actual net income yet due to marketing expenses and other write-offs. What do the companies look at to see what you are able to qualify for? I would like about $3,000 - $4,000/m of benefit which should be about 60% of what I am grossing at the moment. I am also 55 so a lot of companies won't give me 10 years or to 65.

Thoughts and what is everyone else out there doing for DI?

Thanks

DI benefits are usually calculated on GI, not AGI. They will want to see your 1099 statements, not your 1040.

You can easily get a to 65 policy... even a to 67 policy.

Guardian would be my first choice. Then Ameritas. Guardian will go up to 70% of Gross income in most cases. They also have special UW for new professionals and for start up businesses.
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Old 06-01-2015, 11:57 AM   #4
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Disability Insurance for Agents
Originally Posted by scagnt83 View Post

DI benefits are usually calculated on GI, not AGI. They will want to see your 1099 statements, not your 1040.
Who do you know that does this? From my experience, carriers do go by AGI and if you're 1099 they require full tax returns.
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Old 06-01-2015, 12:11 PM   #5
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Disability Insurance for Agents Re: Disability Insurance for Agents
Originally Posted by aclaro View Post
Who do you know that does this? From my experience, carriers do go by AGI and if you're 1099 they require full tax returns.
I dont know of any that go by AGI. That would make no sense at all!
As Head of Household I get a $12k deduction automatically... that doesnt mean I made $12k less in income or spent $12k less. Take home pay is not the same as AGI. Why would they base benefits on adjusted income after all of your deductions?... The answer is that they dont.

When they ask for a 1040 they look at the W2 wages reported on it. Not AGI. (AGI is after deductions)

The reason they sometimes want full returns if you are 1099 is to make sure you are giving them all sources of income and not selectively showing just 1 or 2.

I do not know of a single DI carrier that bases benefits on AGI.
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Old 06-01-2015, 12:38 PM   #6
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Disability Insurance for Agents
Okay AGI is the wrong term it's net income though not gross income. They want your full tax returns for the schedule C. They take your earned income as defined by compensation received after business expenses and before deductions for tax purposes. They also may make adjustments based on unearned and/or passive income.
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Old 06-01-2015, 01:24 PM   #7
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Originally Posted by aclaro View Post

Who do you know that does this? From my experience, carriers do go by AGI and if you're 1099 they require full tax returns.
Normally some sort of express underwriting for up to $2500. Don't forget business overhead coverage.
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Old 06-01-2015, 01:24 PM   #8
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Disability Insurance for Agents Re: Disability Insurance for Agents
Originally Posted by aclaro View Post
Okay AGI is the wrong term it's net income though not gross income. They want your full tax returns for the schedule C. They take your earned income as defined by compensation received after business expenses and before deductions for tax purposes. They also may make adjustments based on unearned and/or passive income.
You are correct. They often want to see Schedule C. But you can insure Gross income (or a good portion of it) by layering a BOE policy over the IDI policy to cover business expenses.
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Old 06-01-2015, 07:41 PM   #9
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Cash on Disability Insurance for Agents
 
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Disability Insurance for Agents Re: Disability Insurance for Agents
Principle has a program for agents. I can't find the details of it but I believe it is no proof of income up to $150,000. So take 60% of that and that is the largest benefit amount with out financial underwriting. They issue is at 4A.
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Old 06-01-2015, 08:37 PM   #10
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Tennesseehorn on Disability Insurance for Agents
 
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Originally Posted by Cash View Post
Principle has a program for agents. I can't find the details of it but I believe it is no proof of income up to $150,000. So take 60% of that and that is the largest benefit amount with out financial underwriting. They issue is at 4A.
As an independent agent can I write myself or do I need to go through their agent?
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