Existing Individual and Group Disability Insurance policies can be added via the Net Worth section of the Profile (or the Net Worth step of the initial data entry process), by selecting Add Account > Insurance > Individual/Group Disability:
Individual/Group Disability Data Entry
- The Policy name will default to [Client's] Disability Insurance, but you can enter a custom name if you'd like. You will also want to choose the client or co-client as the Owner.
- Enter the dollar amount for the client's Annual premium. The premiums will be reflected as an expense within the Retirement > Cash Flows for the duration of the policy.
- Choose whether the Benefit type is a monthly dollar amount, or a percentage of the client's salary. Enter the Monthly benefit, and check the 'Benefit taxable' box if the benefits paid are to be considered taxable income. If there is a Monthly benefit cap, check the box and enter the monthly cap to the right.
- Use the Benefit inflation field to specify the percentage that the disability benefits will increase each year. You can choose whether this is simple or compound interest using the Inflation type field. Benefit inflation will only impact the monthly benefit, not the benefit cap.
- Specify the Benefit period (the number of years benefits will be paid) and the Elimination period (the number of days the client must wait after the disability event before receiving benefits).
Additional Information
Group disability coverage and premiums will automatically end at the client's retirement age. You can set the retirement age for each client within the Profile > Goals > Retirement Age goal card. Individual disability policies will provide an additional field to specify the date the policy ends.
Only the Annual premium will impact the Retirement Analysis and Cash Flow projections, as there is no way to trigger a disability event within the Retirement section. You can use the dedicated Disability Insurance Analysis to analyze a scenario in which the client becomes disabled tomorrow. The disability analysis can be accessed within the Insurance > Disability module of each plan.
