Disability Insurance for Business Owners is essential in today’s world. Business Owners depend on themselves to run their business smoothly and make money. Your career as a business owner is one of your greatest assets. Why not protect everything you have accomplished so far?
When considering financial security and protection, business owners need to keep two simple questions in mind:
- “What will I do to earn money if I can no
longer go to work because of an illness or injury?”
- “How long could my family and I
maintain our current lifestyle if I couldn’t work?”
Disability Insurance For Business Owners – Why Do I Need It?
- Disability Insurance for Business Owners will enable you to continue paying for rent/mortgage, groceries, child care, tuition, entertainment, etc. while you aren’t able to work.
Critical Points to Remember As a Business Owner
- If you stop working, your primary money source stops flowing in. Disability Insurance for Business Owners will greatly help you.
- Business owners will most likely not take on jobs outside of their business during recovery time, which will most likely extend the disability period.
- Because your business may require physical skill and agility, business owners are more likely to be completely disabled versus partially disabled, which can also extend the disability period for you.
- In addition, business owners, especially small business owners, don’t have access to employer-sponsored group disability insurance coverage.
Special Considerations For Your Disability Insurance Policy
- The formal definition of Total Disability should be defined in your policy as “Own Occupation”. This term means you will be considered disabled if you can’t complete the duties of your own occupation, versus any occupation. With this definition, you should be able to collect benefits as long as you can’t perform as owner of your company. This provision helps you, as the business owner, maintain financial protection and security until you can do the exact job that you specialize in.
- The definition of Residual (or Partial) Disability should be “Loss of Income”. While more expensive than “Time & Duties”, Loss of Income ensures your benefit will make up the difference in your pre-disability income up to a set percentage (usually 80%-90%) until you can earn that amount on your own. Because it may take months to rebuild a client base once you return to work, Loss of Income is necessary to cover your income until things begin to improve.
Depending on your specific circumstances and specialty, additional stipulations may be necessary to ensure your income is protected if you can’t work.
Disability Insurance for Business Owners is key to have in order to fully protect yourself in your profession. To discuss your options and customize a policy, please call us at (800) 788-8921 or fill out our brief Contact Form to be contacted by an advisor directly.