Hi,
I have a Guardian LTD around 8K/mo payout to maximum term (think 67) and includes many of the better riders (COLA, and a few others, don't recall), purchased a few years ago. I'm self-employed technical/ engineering consultant, make a good living, but thinking of starting a second business that eventually is more apt to grow. Not for sure, but thinking about it.
One of the things I hate about that policy (as with pretty much any LTD I could find) is that it bases payouts on last three years income closest to disability. Not ideal if you want to start another business and split some of your time/efforts and therefore might have a temporary drop in income or a split in your income sources whereas the primary occupation may not be at it's full earnings capacity. I did like the "your occupation" feature, which is one of the main reasons I went with Guardian.
So, if I start another business how can I remain protected? Businesses sort of start out sometimes as a bit of a hobby, you see how viable things are, and then they grow. But in the mean time, you may not instantly earn high dollars, yet it is plausible resources from the primary business could decline. It could be argued that aspects of the second business are related to the first business, but ultimately this will be a new company with a different strategy, and even if it does start out similar, I think it will change substantially over time.
Intent is to keep both businesses going, but should the second business (related to real estate) take off fantastically, than I may continue with the first business on a much more limited basis. Or either could be sporadic. Just don't know yet.
BUT what happens if tragedy strikes and I become disabled? If the timing is right (or wrong depending on how you look at it), perhaps I wouldn't be able to collect the benefits, or full benefits? What can I do to avoid being in this situation?
Can't afford two high dollar separate policies. Already paying for a very expensive LTD and now adding Life..but do want to be protected to not lose income for life. Any good options?
Thanks.
I have a Guardian LTD around 8K/mo payout to maximum term (think 67) and includes many of the better riders (COLA, and a few others, don't recall), purchased a few years ago. I'm self-employed technical/ engineering consultant, make a good living, but thinking of starting a second business that eventually is more apt to grow. Not for sure, but thinking about it.
One of the things I hate about that policy (as with pretty much any LTD I could find) is that it bases payouts on last three years income closest to disability. Not ideal if you want to start another business and split some of your time/efforts and therefore might have a temporary drop in income or a split in your income sources whereas the primary occupation may not be at it's full earnings capacity. I did like the "your occupation" feature, which is one of the main reasons I went with Guardian.
So, if I start another business how can I remain protected? Businesses sort of start out sometimes as a bit of a hobby, you see how viable things are, and then they grow. But in the mean time, you may not instantly earn high dollars, yet it is plausible resources from the primary business could decline. It could be argued that aspects of the second business are related to the first business, but ultimately this will be a new company with a different strategy, and even if it does start out similar, I think it will change substantially over time.
Intent is to keep both businesses going, but should the second business (related to real estate) take off fantastically, than I may continue with the first business on a much more limited basis. Or either could be sporadic. Just don't know yet.
BUT what happens if tragedy strikes and I become disabled? If the timing is right (or wrong depending on how you look at it), perhaps I wouldn't be able to collect the benefits, or full benefits? What can I do to avoid being in this situation?
Can't afford two high dollar separate policies. Already paying for a very expensive LTD and now adding Life..but do want to be protected to not lose income for life. Any good options?
Thanks.