What is Disability Insurance and What are the Most Common Claims? – Keller TX

Hi, my name is Emily and I’m with DDB Financial Services. We assist people with long-term care, disability insurance, and life insurance. And today, I wanted to talk about what disability insurance is. All it is it’s an insurance policy that protects your income. Most people will carry it until the age of 65. You can get it for other periods, such as five or 10 years. And I do that for my clients often that may be in the decision making period where they might sell a practice or get into another occupation. And they may not need the coverage within that field for very long.
But I also wanted to go over what are the most common claims for individual disability policies? And most people don’t know that they are actually caused by sicknesses. Some of the most common sicknesses are heart disease, arthritis, mental and nervous system issues. You also have people that have fractures, back or degenerative disc diseases that they will need to claim. And oftentimes what will happen is once people go on claim due to a sickness, they will have other issues that follow with it, including depression and depression is very common. And it is a disability, counted as a disability. And it will pay for you to recover in the time of need. And that way you can take your time and get back to a good place in your health before you go back to work. And a lot of the times, the disability policy will allow you to go work somewhere else while still getting disability income from your other job, which is very, very important to know. That is all we’re going to cover today and stay tuned. We’ll be going over life insurance and long-term care services soon. Thanks.

Call DDB Financial Services in Keller TX at (817) 559-3018


Under Written by

United of Omaha Life Insurance Company

A mutual of Omaha Company

One of the oldest sayings in business is that your employees are your most valuable asset. That’s because they are the face of your organization, they influence the bottom line and bring the skills and knowledge needed to make things tick.

And every organization has employees that they just can’t do without. Someone who is so integral to your success, you can’t imagine doing business without them. Those are your key people, and when the success of your business hinges on them, it may make sense to protect them with key person insurance.

What Costs Are Associated With the Death of a Key Person?
Losing a key person from your business can have negative effects that run throughout the organization. Some of them directly affect the bottom line, while others can have negative long-term effects:

•  The loss can impact earnings from a lack of sales, affecting outside financing and creating internal inefficiencies from the loss of the key person.

•  The death of a key person can mean the loss of skill or knowledge that is integral to the business.

•  Customers who have built a relationship with the key person who has died may have concerns about the business and its ability to continue to provide them with the service they need.

•  The death of the key person can be concerning to creditors and create holds on new credit or accelerate requests to pay back loans.

•  Costs for recruiting and training a replacement for the key person can be significant.

•  As the replacement learns the ropes of their new role, they likely won’t be as productive or generate as much income as the key person.

What is Key Person Insurance?
Simply put, key person insurance is when a business takes out a life insurance policy on an essential employee. The business pays all the premiums and owns the policy. In the event this key person passes away, the business will receive a death benefit that can be used to sustain the business as it recovers from the loss.

How Can Key Person Insurance Protect You From Those Costs?
The cash liquidity that comes with the death benefit following the loss of a key person provides your business with the financial flexibility to recover from your loss, no matter what your challenges are. Whether you need cash to maintain profitability, pay loans and strengthen credit, or pay employee salaries, a life insurance policy on a key person can help.

How to identify who these key people are?

•  Who does your business count on the most?

•  Who makes the most money for the company?

•  Who do you miss the most when they are out?

•  Who has the most contact with clients?

These questions can help you find employees or executives who are crucial to your business, and for whom you should have a plan if they were to pass away.

An Example of How You Can Use Key Person Insurance
Dan Isaacson is a 45-year-old skilled architect who has been employed by Davis Construction for 18 years. Dan has played a significant role in building the business.

Alex Davis is the owner and founder of Davis Construction, and he understands how important it is to plan for the unexpected, especially when it affects the success of his business. Alex decides to purchase a cash value life insurance policy in case Dan dies unexpectedly.

Dan currently earns $100,000 annually and Alex has determined that it will take five times Dan’s current income to replace him and recover any lost business costs in the event of Dan’s unexpected death.

After spending three years training his replacement, Dan is ready to retire at age 65. Davis Construction has a few options:

•  The business can surrender the policy and keep the cash value

•  The business can surrender the policy, keeping the premium it paid, and pays the cash value gain to Dan as a retirement bonus

•  The business can surrender the policy, paying it all to Dan as a retirement bonus

•  The business can transfer the policy to Dan if Dan wants to continue paying premiums and keep the policy as a personal insurance policy

*The purpose of this example is to illustrate a concept. Specific tax or legal questions should be directed to your tax or legal counsel

Why Mutual of Omaha?

Over 50 years of Mutual of Omaha’s the Wild Kingdom taught us that the animal kingdom and the human kingdom have something in common … an instinct to protect what matters most. Through insurance and financial products, we help people protect their lives, protect their families, protect their kingdoms.


Life insurance is underwritten by United of Omaha Life Insurance Company, 3300 Mutual of Omaha Plaza, Omaha, NE 68175. United of Omaha Life Insurance Company is licensed nationwide except in New York. This is used for the solicitation of insurance. An insurance agent/producer may contact you. Consult with a professional tax and/or legal advisor before taking any action that may have tax or legal consequences.

The Leveraged Distribution Strategy® – Cases Study 2

The Leveraged Legacy Strategy.

Maximizing life insurance portfolios while reducing the out-of-pocket costs.

Legacy planning is necessary to maintain continuity of wealth for future generations. Premium financing may allow clients to use less of their existing capital to fund their legacy and inheritance objectives.

The Client

Age 60 and 57, nearing retirement    

  • Married, three adult children
  • Seven grandchildren, so far
  • Growing estate of $15 million

The clients don’t currently have estate tax exposure,, but they are concerned about their financial legacy. They want to enjoy their upcoming retirement, and simply do not want to give up lifestyle

A common challenge among successful entrepreneurs is the need to simultaneously create and grow wealth both inside and outside of the business. These are competing priorities for some, while others may find a custom premium finance plan may provide a potential solution. A bank may finance premiums, making it easier to reinvest in the business. In doing so, the life insurance policy is positioned to create potentially significant tax-efficient income throughout retirement, while safeguarding legacy with the policy death benefit.

The Leveraged Legacy Strategy™ provides flexibility while avoiding commitment to large life insurance premiums.

Loan Repayment

The lender usually is repaid via policy loan against cash values; this loan is carried in all future policy years. The net death benefit is paid out to policy beneficiaries.

Results are not guaranteed. All TLDS structures are designed under IRS non-MEC guidelines to maintain tax-free status. Loan repayment amount is estimated based on varying interest rate. Rates are based on a spread over lender-determined rate. This is based, in part, on the amount of annual borrowed premium. TCP calculates interest for case studies based on SOFR forward rate curve. For educational purposes only .

Tennyson Capital Partners | 2600 N Dallas Parkway, Suite 520, Frisco, TX 75034 | 972.608.3871 | www.tennysoncapitalpartners.com

Partial withdrawals and surrenders from life policies are generally taxed as ordinary income to the extent the withdrawal exceeds your investment in the contract, which is also called the “basis.” In some situations, partial withdrawals during the first 15 policy years may result in taxable income prior to recovery of the investment in the contract. Loans are generally not taxable if taken from a life insurance policy that is not a modified endowment contract (MEC). However, when cash values are used to repay a loan, the transaction is treated like a withdrawal and taxed accordingly. Unpaid interest on loans is added to the loan principal, thereby increasing the total debt on the policy. The combination of an increasing loan balance and deductions for contract charges and fees may cause the policy to lapse, triggering ordinary income tax on the outstanding loan balance to the extent it exceeds the cost basis in the policy. Loans, if not repaid, and withdrawals reduce the policy’s death benefit and cash surrender value. Refer to compliant life insurance carrier illustrations for specific disclosures related to policy loans and how they may impact a policy. Copies of illustrations used for case study samples are available upon request.
Premium financing involves certain lending risks including, but not limited to: change in interest rates, increased premium costs, market volatility, change in collateral valuation, margin calls, and termination, modification or non-renewal of the loan. These risks include the risk that life insurance protection will not be present at the time of the insured(s) death either because the lender has foreclosed on the policy or because the amount owed to the lender exceeds the insurance proceeds, in which case additional funds may be needed to repay the loan. If the policy is surrendered, the policy owner may be taxed on any policy gain even though the policy proceeds are paid to the collateral assignee.
Material discussed herewith is meant for general illustration and/or informal purposes only. Although the information has been gathered from sources believed to be reliable, please note that individual situations may vary. Neither SCF Securities, Inc., nor Tennyson Capital Partners LLC provide tax or legal advice. Please consult with tax or legal professional for specific individual guidance.
Tennyson Advisory Group offers Securities through SCF Securities, Inc. – Member FINRA/SIPC and Advisory services through SCF Investment Advisors, Inc. 155 E. Shaw Ave, Suite 102,
Fresno, CA 93710 | (800) 955-2517 | (559) 456-6109.
Tennyson Capital Partners is not a broker-dealer or registered investment advisor and does not offer securities or advisory services. SCF & Tennyson Capital Partners are not affiliated.

The Leveraged Distribution Strategy® – Cases Study 1

The Leveraged Distribution Strategy® – Cases Study 1
by Tennyson Capital Partners

Maximizing the tax benefits of permanent life insurance to provide significant tax-efficient income potential in retirement.

The Client
• 48-year-old business owner
• Earns $500,000 annually
• Net worth of $4.5 million
• Needs additional life insurance to replace income
• Needs additional retirement income and has maximized qualified contributions
• Comfortable allocating up to $25,000 quarterly for ten years


A common challenge among successful entrepreneurs is the need to simultaneously create and grow wealth both inside and outside of the business. These are competing priorities for some, while others may find a custom premium finance plan may provide a potential solution. A bank may finance premiums, making it easier to reinvest in the business. In doing so, the life insurance policy is positioned to create potentially significant tax-efficient income throughout retirement, while safeguarding legacy with the policy death benefit.


An Intro To DDB Financial Services – Keller TX

At DDB Financial Services, we believe you deserve top quality service… Period. That’s why we’re committed to giving you the best of us. We’ll always make sure you have the right coverage, the right discounts, and can take comfort in knowing the things that matter most to you are protected. We also believe in giving back! As Agents of Change in our community, we’re dedicated to helping others live well and thrive!

Call DDB Financial Services in Keller TX at (817) 559-3018