Update August 26- 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Disability Insurance 10 - Types of Disability Insurance
By Kyle J Norton


The main purpose of disability insurance is to to replace an individual's income should they be unable to work as a result of either an accident or a sickness. In this article, we will discuss type of disability insurance for business owners.
There are four types of business disability insurance:
1. Business Overhead Insurance.
The insurance helps to pay for the reimbursement of business expenses in case of disability of the insured. Since a business owner is responsible for a variety of fixed expenses. Some examples include rent, salaries of employees and utilities, if the business owner suffers a disability, these expenses continue, but the income-earning capacity of the business may be significantly reduced. This type of insurance provide owner with necessary funds to pay for all above expenses.
2.Disability Buy/Sell Policies
If there are several owners in the business the owners may enter into buy/sell agreements which will govern how the business is dealt with in the event one or more of the owners dies, becomes disabled or suffers a bankruptcy.
The disability buy/sell insurance is designed to assist healthy owners to fund the purchase of a disabled owner's share of the business.
In fact, The likelihood of a long-term disability affecting the business increases as the number of owners in that business increases.
3. Wage Loss Replacement Plans
Wage loss replacement plans are designed to provide the benefits of individual disability policies to key employees, while at the same time maximizing the tax benefits to both the employer and employee.
The policy may also provide that on the retirement or termination of the employee's service, the policy will be assigned to the employee and One benefit of grouping several individual disability policies is that the insurer may provide premium discounts when the same policyholder owns multiple policies.
4. Disability benefits under life Insurance Policies
Two main methods of providing disability income in life insurance policies are:
a)Waiver of premium
The insured will stop paying premium in the event the policy owner becomes disabled during the term of the policy.
b)Combination policies
A policy that is considered exempt allows the cash values in the plan to accumulate on a tax-deferred basis.
I hope this information will help. If you need more information of the above subject, please visit my home page.
Kyle J. Norton
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
http://disabilityinsurance10.blogspot.com
All rights reserved. Any reproducing of this article must have all the links intact. I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

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Update August 10- 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Disability Insurance and Loss of Income
By Lance Winslow

If you run a small business you know that if something happens to you and you cannot work, you are history. Temporary Disability Insurance for your small business is a must. Often you do not even have a choice. You must buy it and if you do not then chances are the bank will not give you a loan to start your small business, reject your business plan or decide not to give you the money you need to expand.

Indeed, banks have check box forms they fill out to CYA themselves and prevent loan defaults. Disability Insurance and Loss of Income Insurance is a box on those forms. Even still, if you do not borrow money from a bank and use personal savings, you could lose your entire business or savings if you are injured or hurt and cannot work.

What if you need major medical treatment and it drains your bank account and you are out of work for a month? What about six months? Can your business survive without you? Chances are that it couldn't, as much as we might wish to think otherwise.

It is for all these reasons that when I found myself needing disability insurance, I consulted an expert on insurance to walk me through it all and explain to me what was covered and what is not covered. It pays to ask questions and listen to the experts.

I certainly hope this article is of interest and that is has propelled thought. The goal is simple; to help you in your quest to be the best in 2007. I thank you for reading my many articles on diverse subjects, which interest you.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/. Lance is an online writer in retirement.

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Update Junly 23- 2010 All About "Business Disability Insurance" By Insurance Experts

Business Disability Insurance 23 - Disability Insurance of Key Persons
By Kyle J Norton

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Key Person Insurance is a type of disability insurance that provides the most affordable solution to all types of business.

A. Office overhead spend of key person disability insurance:
It is the insurance that reimburses the individual for actual business expenses incurred after the key person disability commences such as such as rent, staff salaries, business mortgage loan interest, depreciation or loan principal, and leased or rented equipment. Included would also be telephone, utilities, property taxes. and this kind of insurance generally have below figures
1. Waiting period: 30, 60, 90. 180 days are common.
2. Benefit in general is between $1,000 to $20,000+ and paid monthly.
3. Benefit period: 6 - 36 months.

B. Buy out key person disability insurance for Partnership and small corporation
As we mention in the other article, after a lengthy or permanent disability becomes apparent, buying the disabled party's business interest becomes increasingly important. because
1.The business may lose money and suffer
2. The survivors face increased difficulties and frustration.
3. The financial position of the disabled person will deteriorate and both sides fear loss of income and assets.
4. In the event of disability without insurance, the buy-out is left open to the uncertainties of chance and negotiation. In such cases, the seller will usually be under a lot of stress/distress. The best solution is required that the parties enter into a buy-sell agreement prior to the disability of the key person and it is funded by criss-cross agreement. Insurance companies will issue both personal disability policies and buy-out insurance on the same life payable on the same disability.

C. Advantages of key person disability insurance
The amount of the benefit provided to the disabled key persons are generally advantageous to the business as well as to the insured.
1. Premium paid to the insurance company can be included in the budget as a fixed expense.
2. The insurance policy automatically provides the funds at the time of greatest need.
3. The premium paid in generally is cheaper than any of the alternatives.

D. The following conditions will usually apply when insurance is used to provide the funding for the buy-out:
1. Third party insurance (owned by a partner or shareholder) must be issued for the agreed upon price and ownership is not transferable.
2. Usually the company needs to be in business for two years or more and show signs of profitability.
3. Financial statements of the business must be submitted prior to issue of the insurance.
4. Normally this type of disability insurance buy-out agreements insurance have a long waiting period of one to two years. The benefit, if monthly, may have a payout period of up to five years.

E. Paid out
There are 2 types of paid out:
1. Monthly Pay-out: the pay-out is paid in monthly installments for the guaranteed term
2. Lump Sum: the pay-out is paid in one large lump sum payment.

I hope this information will help. If you need more information of the above subject, please visit my home page at:

Kyle J. Norton
http://lifeanddisabitityinsuranceunderwriter.blogspot.com
http://businessinsurance23.blogspot.com

All rights reserved. Any reproducing of this article must have all the links intact. I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

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Update Junly 06- 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Business Interruption Insurance Keeps Your Small Business Running During a Disaster

By James Cochran

It's a small-business-owner's worst nightmare: a fire or natural disaster wipes out your business' headquarters, leaving you and your team with no computers, no office equipment and nowhere to work. Although the right property insurance policy would cover the physical losses and damage to your small business, getting back to serving your customers will take additional time and money.

Thankfully, there's a special kind of insurance designed specifically to help your IT business stay afloat during the worst of times. Called "business interruption insurance," it's typically offered as part of the property insurance included in a Business Owner's Policy, or BOP.

What is business interruption insurance, and how do I know if I need it?

In the event of covered property damage claim at an insured business location, this type of insurance would compensate you for lost revenue resulting from the damage to your property, as estimated by a review of your financial records. This income would allow you to ensure that your ongoing overhead and employees' salaries are covered while your business gets back on its feet. For instance, you're covered for those bills that don't stop coming just because your business is temporarily shut down, such as utilities.

Any small business that could be forced to temporarily close as a result of unexpected losses from physical property damage could benefit from small business interruption insurance. You might also see this specific coverage referred to as "business income coverage," or "earnings insurance." You may also wish to consider extra expense insurance, which pays additional expenses you may incur to keep your business running at a temporary alternative location.

What would business interruption insurance compensate me for in the event of a business shutdown?

Most business interruption insurance policies cover two or three areas:

- Based on your financial records, profits you would have earned had your business not been forced to temporarily shut down.

- Operating expenses, including utilities, that you must pay even while your business is non-operational.

- Expenses related to relocating and operating from a temporary location during repairs (this "extra expense insurance" is not automatically included in all policies, so read the fine print).

What is considered a covered business interruption?

Any business shutdown due to a claim that is covered by your property damage insurance policy should be covered by business interruption insurance. Typically, this would include fire, theft, storm damage, as well as other insured perils specified in your policy. Read your policy carefully to determine if damage due to a flood or earthquake would be covered.

Additionally, if your business is broken into and critical equipment is stolen, or your facility is damaged or vandalized to the point that it's unusable, business interruption insurance may also apply. Keep in mind, there is usually a 48-hour waiting period before coverage begins.

How much business interruption coverage do I need?

Your agent or broker can help you determine the right amount of coverage. In general, the amount of coverage you need and the premium you'll pay will be proportionate to the amount of risk inherent in operating your business. For example, a small IT firm is at less risk of a claim for fire damage than an automotive repair business that stores flammable materials on-site. Another consideration is how quickly your business could relocate permanently or temporarily and resume operations.

Jim Cochran is the owner of Business Insurance Now, a provider of business interruption insurance quotes. Jim understands what needs businesses have during a disaster and can provide the necessary small business insurance coverage to keep them afloat.

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Update June 16- 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Why You Need a Disability Insurance Lawyer

By Ben Newman

One day, I once got into an accident at work which rendered me disabled. I was compensated for the accident that I got into and I was somehow left without work since it was the obvious reason that I got disabled. At first I thought the compensation was good enough but later on I realized that it was not really enough.

Good thing a buddy of mine, who knows someone who had the same problem, introduced me to a system that would assist me to be paid out fully with the aid of disability insurance attorney. This disability lawyer said she might help me considering the claims I will get after i was rendered disabled by the accident.

It was amazing because I got even more money. Certainly, it's great to have a good disability insurance attorney to assist you with these situations. In the beginning I thought it would be very complicated, and maybe not even worth the effort. I was wrong. At first, I thought that I could make it on my own. Never did I think that it was going to be that hard. That it why at first I settled for the compensation which the company gave me. So it was until I discovered disability lawyers.

A disability insurance attorney can help you quickly and efficiently. When you see how they do it, you will know that it will much more likely win you the case and get you paid well. Now, this is what everyone who gets disabled needs. When these things happen, I firmly suggest you get the services of a disability lawyer. You simply need to get the disability lawyer whom you can rely on. Take a quick look at the credentials and experience of the lawyer before you hire them.

Again, it always pays to get a good and expert disability lawyer. You do not want to settle for something less. So you go get a disability lawyer who would help you all throughout the process of winning your insurance claims over your disability. Do not be afraid to put your trust with a disability insurance attorney. I have put my trust in it once and it helped me a lot. I am pretty sure that it will help you too.

Finding a disability lawyer is essential if you have been disabled in an accident. There is no doubt you will not get what you deserve without a disability insurance attorney on your side.

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Update May 26 - 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Should a Small Business Owner Buy Disability Insurance?

By Jeff Pennington

If you were to suffer from a long-term injury or a debilitating illness, would your small business be able to survive without you? Would your savings and other assets be enough to cover your medical bills and other expenses? If not, you should consider a back-up plan. With disability insurance coverage, you can replace your income in the event you are injured in an accident.

Will Social Security Disability Cover My Income?

The disadvantage of relying on social security benefits is that it takes a very long time before you begin to receive benefits. Often times, social security claimants are declined from receiving benefits even if they are clearly disabled. Secondly, the payout is extremely low. With disability insurance, you can rest assured that your financial obligations will be take care of in case you are unable to fulfill them because of an injury.

1. Buy a non-cancellable policy. With a non-cancellation policy, your benefits and premiums are fixed. The only drawback is that it is a more expensive policy.
2. Guaranteed insurability. If you are worried about medical qualifying, this type of insurance is recommended.
3. Compare insurance carrier ratings. Comparing insurance provider ratings will help you determine which insurance carrier is financially fit.
4. Determine which disabilities are covered. Before investing in disability insurance, make sure you know what is covered within your insurance plan. Not all disabilities are covered.
5. Base your decision on benefits. Never base your decision to purchase insurance solely on the cost. Invest in the policy that offers the most benefits within your budget.

Why do you need Disability Insurance?

If you are a business owner, you have invested a lot of time and money in growing your business. It would be a devastating experience to lose your income because of an unexpected injury. The good news is you can prevent this from happening by investing in a good disability insurance policy.

Hello, I'm Jeff Pennington. In late 2002, I decided to create a business that would improve the way professionals buy disability insurance and term life insurance. I wanted to combine the friendliness and personal service that comes from a small insurance company, with the effectiveness of an online insurance business.

I work with multiple companies to find small business disability insurance that they can afford.

My technology based system is able to communicate electronically with our insurance carrier partners, enabling us to offer you a simpler, more streamlined disability insurance application process.

Update May 05 - 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Obtaining Disability Insurance

By Barry Wilsmiths

Disability insurance is a policy that supplements your income in the event of a disability that keeps you from working and earning an income. It gives you enough to take care of your financial needs until you are able to go back to work. There are great benefits of protecting your income against a disability. It is top on the list of the causes of home foreclosure and bankruptcy. There is a 20% chance of being unable to work for up to a year of your working years due to one form of disability or the other.

If you provide for yourself and have no other person (spouse or relation) to supplement your income in case of an emergency, then disability insurance is for you. A few months out of work can erode all your savings and make you end up deep in debt or even bankrupt. Social security disability would have been an option but it is very difficult to qualify for, and if you do, the amount you receive is very low compared to your previous income. You can try it, but don't depend on it.

The following are the steps to get disability insurance:

1. Do some research to find a few reputable insurance companies that carry disability insurance. Confirm their standing with the Better Business Bureau in your state. Contact their representatives and get quotes from them.

2. Decide on the company to buy your insurance from after comparing different quotes and terms. Ask for their application form. It could be sent to you via email (quicker) or by post.

3. The insurance company's medical examiner will contact you to set up a date for a physical examination to check your health. This is usually at no cost to you.

4. It takes about a month to six weeks for your application to be reviewed and you are issued your disability insurance policy.

You are given the first one month to decide to stick with the program or cancel.

To get a lot more Insurance Information check out Insurance Information Center.

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