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Start Up Savvy Underwriting Program for the Newly Self-Employed
Getting Disability Insurance as a Brand New Business Owner
by Anthony Delvecchio
E-Mail Anthony Delvecchio

You have worked with a company for the past few years. You have decided that you no longer want to work for someone; instead you are going to finally branch out and start your own business. You go though the pros and cons and realize one of the advantages you will be giving up is employer-paid benefits. One of those benefits is group long term disability insurance (Group LTD). As you begin to research individual disability insurance (IDI) you realize it is not going to be easy to verify your income. It is a new business, and you may not have financial proof or documents to verify your new income. There is a program through Berkshire Life Insurance Company of America that new business owners can use to get the individual disability insurance protection they need for their income. Under this program, business owners in the first year of a start up-or before they have filed tax returns on the new business-will be considered using a special streamlined process.

Start Up Savvy Underwriting Program for the Newly Self-Employed The Three Streamlined Requirements are:

1. Ages 30-50, with at least 5 years of industry experience.
2. Working in an industry other than real estate or financial services
3. Submit’s a copy of the most recent W-2 from the prior employer

If you fit the above description you would qualify for a maximum monthly benefit based on 50% of the W-2 verified prior earnings (with a maximum monthly benefit of $5000).

This means if your annual w-2 income from your prior employer was $200,000, prior to starting your new business, you could qualify for the maximum $5000 per month in disability coverage. In this example the program would take $200,000 of annual w-2 income from our prior employer, cut it in half and base the amount of disability insurance coverage that could be offer based on an annual income of $100,000.

Taking advantage of this program allows you to get the coverage you need now and lock in your medical insurability for the future with the *“Future Increase Option Rider”. Many new businesses’ take time to become profitable. Instead of waiting until your new business shows a profit, protect your income immediately. Once you have established yourself and are capable of providing proof of your income, you can always increase your coverage utilizing the Future Increase Option Rider or reapplying for more coverage.

You have taken a big step in your career. Now more than ever your ability to provide for yourself and family is going to be solely on you. Make sure you get the right protection in force immediately. Take advantage of this new program.

Disability insurance Policy Forms 1400, 1500 or 1600 underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. This policy provides disability insurance only. It does not provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department. For policy forms 1400, 1500, or 1600, the expected benefit ratio is 50% (including NY 1400). For policy forms 1400-F, 1500-F, or 1600 F, the expected benefit ratio is 60% (NY only). The expected benefit ratio is the portion of future premiums that the company expects to return as benefits, when averaged over all people with these policy forms respectively. Product availability, provisions and features may vary from state to state.

*Restrictions and limitations apply. While medical information is not required when exercising a future increase option, applications to exercise an increase option will be financially underwritten, taking into consideration both the applicant’s then current income, as well as all disability insurance which is then in force, for which the insured has applied or is eligible to receive. Optional riders are available for an additional premium.

Anthony DelVecchio, Financial Representative, The Guardian Life Insurance Company of America (Guardian), New York, NY. The views and opinions expressed here are that of the author and do not necessarily represent the views and opinions of The Guardian Life Insurance Company of America, its subsidiaries or affiliates.

Published April 5, 2012 by Anthony Delvecchio

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