Overlooked Disability Solutions for Everyday Needs

Here are some lesser known, nevertheless fantastic financial protection solutions that allow clients valuable insurances without the potentially dangerous need of assigning personal disability benefits.  The following available Petersen International products assist in keeping personal income protection intact while addressing other personal or business-specific financial needs with alternative disability program options.

Loan Indemnifications

Banks and other capital lenders often require borrowers to provide proof of disability insurance equaling the monthly loan payments.  Should a borrower become sick or injured, the loan repayment will continue, making the lender whole.  The preferred solution for this type of requirement would be the prescription of disability insurance that would pay the monthly loan payments and/or pay-off the remainder of the loan balance, while not interfering with the borrower’s personal disability insurance.

While it may be typically acceptable to the bank, asking an individual to assign his or her personal disability benefits would leave the insured’s family financially vulnerable.

Petersen’s Loan Indemnification Disability Insurance plan satisfies the lender’s insurance requirements so that the loan can close without delays.  Loan Indemnification Disability Insurance provides customized benefits tailored to the stipulations of the loan agreement, including coverage for both principal and interest.  Benefits are designed to cover 100% of the monthly or lump sum loan payments.

Contract Guarantees

Signing a contract obligates both parties to stand by their initial agreement.  Unfortunately,

unforeseen circumstances can inhibit people and corporations from carrying out the terms of their legal contracts whether they be for employment, consulting or performance agreement purposes.  One party’s inability to fulfill the terms of the contract could mean the other party takes a huge financial loss.

Traditional contract guarantee plans may not provide high-limit benefits to fulfill a client’s financial needs to avoid a breach of contract.  Petersen’s Contract Guarantee Disability Insurance will provide sufficient cover when other disability insurance agreements fall short.  Whether contracts are between companies and employees, between business partners or between divorced couples, most contractual relationships can be considered under Petersen’s disability program.

Stock Options

What happens to an executive who is regularly compensated in stock options when he/she has a career ending disability?  Disability insurance benefits will begin after the elimination period, but their annual stock options will no longer be awarded to them.  With many contemporary executive compensation packages heavily weighted toward stock options, their disability insurance portfolio will have a massive deficit.

Petersen’s Stock Option Disability Insurance plan is a long-term, own-occupation, career-ending disability insurance product designed for executives of publicly traded companies.  Benefits are paid on a lump sum basis of up to five times the last three years’ annual average stock option awards.

Please reach out to our DI team at (800) 345-8816 if you have any questions about these unique disability insurance solutions.