Scenario
An established company has just recently started a Group Health Benifits plan.
8 of the 10 workers are Employees – while the other 2 are independent contractors.
These two contractors also happen to be the owners (and high – income earners)
As an independent contractor you are not typically eligible for Long-Term Disability on the Group Health Benifits Plan.
How can we provide income / lifestyle protection to these two independent contractors?
Who Introduced Client to Us?
The firm’s general insurance agent (provides vehicle fleet insurance and building insurance).
Objective
Provide income/lifestyle protection for the 2 independent contractors.
Traditional Disability Insurance covers T4 salary income and not income from multiple sources (as in the case of an independent contractor).
Provide a solution outside of the group benefits plan customized for these high-earning individuals.
Alternative Options
This client opted for the Long-Term Care option - not only less expensive per month, but he wanted the security that the coverage would last far beyond age 65.
This client could have chosen a hybrid of both options.
Wrap up
Income is the most important asset to insure.
Independent contractors do not typically qualify for Long-Term Disability coverage on group plans.
Long-Term Care insurance is an excellent alternative for such individuals who want to protect the lifestyle, but don’t fit the traditional income type and employment definitions.
