All About Business Disability Insurance: 2009

Sunday, December 27, 2009

Update Dec. 27 - 2009 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)

Seven Reasons Why Disability Insurance Will Increase Revenues For Businesses

By Michael Managhan

The primary reason businesses are created is to create revenue for it owners. There could be a single owner or many owners like a corporation. These businesses are always looking for ways to increase revenue. I will explain in this article seven reasons how disability insurance can increase revenue for a business.

The first reason is that having disability insurance will decrease time off for employees. Disability insurance has a time limit on how long an employee will be paid for their time off. When employees are working more then being off because of a sickness and accident more services and products are being produced creating more revenues.

The second reason is that an employee paid disability insurance will save cost for businesses on their benefits. The liability of having this insurance will be passed on to the employee.

The third and fourth reason is for tax purposes, when businesses have disability insurance, it is a business expenses and this will increase revenues by paying less taxes and workman compensation expense.

The fifth reason is when employees have disability insurance in place for themselves and they do go off work because of a sickness or accident. It is less likely that the employer will need to help the employee pay their bills. This in turn will keep revenues increasing and expenses down.

The sixth reason is that having disability insurance in place will cause less stress for an employee. The concern of a potential lost of wages because of a medical leave can cause employees to be less productive. A employee that has less stress on the job will be more productive causing an increase in revenue.

The last reason for having disability insurance is that employees will feel that the business cares about their well being. This will cause employees to stay with the company longer. This will increase revenues, because the expense of hiring and training new employees will decrease.

In conclusion, the seven reasons for having disability insurance for a business can increase revenue. The need for businesses to have insurance can be determine by how much it does increase revenue. The business must evaluate their profit margins to justify having the insurance. As the number of accidents and illnesses increase in society, the need for disability insurance will be increase in the future.

Article Source: http://EzineArticles.com/?expert=Michael_Managhan

Disability Insurance - Why You Should Purchase It?

By Michael Russell

All of us should have a financial to-do list. Purchasing disability insurance probably ranks pretty low on this list. Most of us figure that we won't need it. But according to current statistics, approximately 30% of people age 35 to 65 will have a disability lasting at least 90 days. These disabilities can seem as minor as a broken bone, an atypical pregnancy, or an emotional conditional, but all of these can cause you to stay away from your job. If you should ever need disability insurance, you will be glad that you took this precaution. A great number of people without coverage could be driven deeply into debt.

Most people think they do not have to purchase additional disability coverage because they are already covered through work. But most disability insurance covered through employers only provides 60% of your salary. Further, these policies usually set a monthly maximum of $10,000, which is less than 60% of highly compensated employee's salary. Another problem is that these benefits are fully taxable. This means your net payment is a lot less than the 60% of your salary. These employees find themselves trying to survive on 40% of their salary.

When shopping for a policy, look for the strength of the company. You need to determine whether the insurance company is financially sound. Also make sure they will be able to pay their claims in the future.

On your contract, check the renewability. There are three options. The non-cancelable contract is the best. This type of contract locks in your rates and benefits. The only person that can make changes is you, not the insurance company. Next in line is the guaranteed renewable policy. Once you have purchased your policy, the insurance company cannot drop you but they can raise the prices. The worst type of policy is the conditionally renewable policy. The insurance company can raise rates at any time or put any condition on the policy.

Pay attention to how the insurance company defines "total disability". The most lenient, consumer-friendly approach is "own-occupation disability". This means that if you are disabled and cannot perform your principal job duties, you will be paid your disability benefit, even if you can perform other tasks.

The most stringent definition of "total disability" is "any occupation disability". This means that you will not be paid any benefits unless you are unable to do any kind of work and are completely unemployed. You will find that many insurance companies define "disability" somewhere in between the two extremes defined above.

It is prudent to purchase partial disability or residual coverage. This means that the insurance company will pay partial disability benefits if you can work at your job only part time. Their employer would pay for the time actually worked and the partial disability coverage would pay the other portion.

The price of disability insurance premiums typically cost 3% of your annual income. This varies based on factors such as age, gender, occupation and health history. When pricing your policy, the insurance company will categorize you according to your occupation class. Your policy will be more expensive if your occupation is more likely to results in a disability.

As you can see, it is financially prudent to purchase disability insurance if you would lose your income because of a disability. Only the wealthiest people are not in this category. There are many factors involved when purchasing this type of insurance. Take your time and educate yourself. Chances are, you will be glad that you did.

Michael Russell

Your Independent guide to Disability Insurance

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Tuesday, December 8, 2009

Update Dec. 08 - 2009 All About "Business Disability Insurance" By Insurance Experts

Disability Insurance is Not the Be All End All, But Definitely an Important Risk Eliminator

By Lance Winslow

Are you self employed or the major bread winner in your family? Well then health Insurance, especially disability insurance is a wise thing to have, but spending too much on shopping for it is unwise, as you most likely will never use it. However, if you are the major income earner in your family it could be a life saver down the road.

For those looking to save money on disability insurance, try getting a high deductable health disability plan. If you are self employed you must consider that if you are taken out of the picture for a time your business might go broke, and you will have lost everything that you built over the years, so a good insurance policy can shore up that risk if you become disabled.

Let me tell you a story; I was involved in a motorcycle accident and could not run my business, and luckily I had disability insurance. The disability insurance kicked in about the time I got better and it paid for some expenses that I had which piled up when I couldn't work. It was a real bummer not being able to work, but I tried to manage the best I could.

By the time I got paid by the disability insurance company it was three months later, at that time I no longer needed the money and everything was fine, but had I been laid up for longer, I'd probably have lost my business without the disability insurance policy. So, you need to be thinking here, even if you believe, as I did back then, that it could never happen to me. Sure it can, and for me it did one fine summers day while cruising my motorcycle. Please consider this.

Lance Winslow - Lance Winslow's Bio. Lance Winslow is also Founder of the Detail Guys, a cool little Franchise Company; http://www.detailguys.com/founder.shtml/.

Article Source: http://EzineArticles.com/?expert=Lance_Winslow

Disability Insurance - The Recovery Benefit

By Steven Crawford

Protect Your Income
The two most common reasons people buy individual disability insurance are to protect their income, and to protect their family. Many times doing one accomplishes the other, but if you are one of the people who thinks that just because you bought an individual disability insurance policy that you have done the job of protecting your income and your family, you may be sadly mistaken.

Your income probably took a long time to grow, and to reach the level it is today. You probably made more this year than you did last year, and while most high quality disability insurance policies do a good job of paying you if you can't work because of a long term disability, only a select few continue to protect your income after you recover from a long term disability.

Think about it, if you were out of work for 6 months to a year, and then magically recovered, how long would it take you to get back to your current level of income?

The Recovery Benefit
A disability insurance policy can pay you while you are unable to work because of a sickness or injury, but only a select few of them do an adequate job of continuing to pay you benefits even after you recover from your sickness or injury until your income financially recovers. Many of us took years to get where we are today, and unfortunately not all of us can survive being out of commission for 6 months to a year, and then just jump back in to where we were prior to becoming disabled. It may take years to rebuild your business back to where you once were.

Too many disability insurance policies only pay you while you are sick or injured, and then give you a small token recovery benefit once you have physically recovered. If you were making $150,000 a year as a dentist, and were disabled for a year, when you come back to work you are going to have to rebuild. It is not like your patients can wait for you to come back to work, they probably found another dentist. The same can be said for most fee for service professionals. If it took you ten years to build your current business, what makes you think that after being disabled for a year that you'll be able to pick back up where you left off. It may take another 10 years just to get back to where you were prior to being disabled.

To adequately protect your income, which was your original motivation, you need an individual disability insurance policy that will continue to pay you residual disability benefits until your income financially recovers, not just until you physically recover. There are only three carriers in the individual disability insurance marketplace that have the ability to do this today, make sure that the policy you own has a recovery benefit for the entire benefit period, and that there is no loss of time or duties requirement in the definition of residual disability.

Steve Crawford is a disability insurance specialist with Guardian Disability Insurance Brokerage in Rockville, MD. They have been focused on selling individual DI to consumers over the internet since 2000.

Article Source: http://EzineArticles.com/?expert=Steven_Crawford

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Thursday, November 19, 2009

Update Nov. 19 - 2009 All About "Business Disability Insurance" By Insurance Experts

Business Insurance - The Effect of a Disability of Sole Proprietor

By Kyle J Norton

A disability can occur when we least expect it and, as you've already indicated, the consequences can be devastating. In most cases, the disabled person's income will be needed to help the family survive. However, replacement income can be provided by a Group L.T.D. or an individual policy. In this article we will examine the effect and solution for sole proprietor

If disability occurs, there are 4 methods that a sole proprietor can use to stay in business.
a) Sell the business that creates some problems
i) How to find a buyer who knows how to run the business and who has the necessary funds.
ii) the business, with the one key person disabled, soon has a deep discount sale price attached to it.

b) Taking over the business by family member
It is quite difficult to replace the disabled person and become responsible for the business' survival. If it is a spouse who is taking over, they may have the increased burden of the family, including caring for the needs of the disabled partner.

c) Hire a manager
The cost of their salary is added on to the need for continuing income for the owner's family, including operating expenses, there may be too great a strain on the business. It may be challenged to produce sufficient income to cover these amounts.

d) Disability insurance
Disability insurance helps to create
a) Income to finance replacement
b) Confidence in the disabled owner
c) If a disability continues, it provides time to be able to sell the business where it will almost always obtain more money than would be derived from a forced sale.

In case of business wind up because of disability of sole proprietor
If a sole proprietor owns a productive business, they may have assets that can be sold. A store, stock or plant and machinery or other assets can be made into income. Even broken up, there may be some value to the machine's parts while receiving disability income from insurance company.

Please note that a sole proprietor who is working in their profession does not enjoy many of the advantages of a production-based sole proprietor, because an education and a particular skill with a high degree of trained knowledge cannot really be sold for parts.

I hope this information will help. If you need more information, please cisit my home page at :

Kyle J. Norton
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
http://businessinsurance21.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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Business Overhead Expense Insurance – Do I Need It

By Toby Lason

Personal disability insurance protects a physician’s ability to earn income, but what protects his or her medical practice? Business overhead expenses are just as relentless for those who suffer a disability. A practice that relies on a small number of people (or one person) to produce revenue is economically vulnerable if one of those individuals becomes disabled. A business overhead expense (“BOE”) disability policy will cover the ongoing operating expenses of your practice. It ensures that you do not have to use personal assets to pay for business expenses if you become disabled.

If the insured does become disabled, a BOE policy pays a monthly benefit based on business expenses, not anticipated profits. The following are some business overhead expenses that are covered by BOE insurance:

- Rent or Mortgage Payments

- Employee Salaries and Benefits

- Utility Bills

- Property Taxes

- Accounting Fees, Legal Fees, and Professional Dues

- Malpractice and Other Business Insurance Premiums

- Maintenance and Janitorial Services

- Depreciation

- Interest on Business Debts

- Office Supplies

- Other Fixed Expenses that are Ordinary, Necessary, and Tax Deductible

Some policies even cover the salary of a temporary employee hired to do the duties of the disabled. Income taxes, the cost of inventory, and the cost of furniture are a few expenses that are not covered.

There are several key areas in which BOE insurance differs from personal disability insurance.

Benefit Periods – Usually, BOE insurance policies have short benefit periods that do not exceed two years. Remember that BOE insurance is not protecting your ability to generate income—that is what a personal disability policy does. Instead, BOE insurance allows you to keep your practice open, or at least pay for its expenses until you recover. In the case of a long-term disability, it offers you up to two years to make a business decision, such as whether to shut down or liquidate your practice, without worrying about accruing debt from business expenses.

Maximum Benefits – Personal disability insurance pays a monthly benefit as defined in the policy. BOE insurance policies offer a maximum monthly benefit, but only pay the actual overhead expenses if they are less than the maximum benefit. For example, if the maximum monthly benefit is $1,000 but actual business overhead expenses are only $600, the benefit paid is $600. With some insurers, that unused $400 benefit can be applied to increase future monthly maximums or to extend the benefit period.

Taxation – As long as premiums for personal disability insurance are paid with after-tax dollars, the benefits are tax free. DOE insurance benefits are subject to income tax, but the premiums are tax deductible as a business expense.

One similarity that BOE insurance and personal disability insurance policies share is that the sooner you purchase a policy, the better. Not only will you get lower rates when you are younger and generally in better health, but additional coverage can be purchased later without providing further evidence of medical insurability.

BOE insurance is a great idea for small practices with several physicians. If one physician is disabled, their portion of business overhead expenses will be covered by the policy so the other physicians are still able to practice without an extra financial burden.

Your practice should allow you to earn income, not be a financial parasite if you become disabled. BOE insurance doesn’t just protect your practice… it protects you.

Toby Lason is a freelance writer for http://www.doctordisability.com/business-overhead-expense.html>Doctor Disability Insurance

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Sunday, November 1, 2009

Update Nov. 01 - 2009 All About "Business Disability Insurance" By Insurance Experts

Disability Insurance - The Often Forgotten Protection

By Will Barnes

Disability Insurance is often the forgotten protection. Anyone can become sick or hurt. Whether you are employed or a small business owner, you can become sick or hurt, unable to generate an income, and find yourself financially devastated. This type of insurance is designed to protect you from such a dire situation.

According to the Social Security Administration, seventy percent of the private sector work force has no long term disability insurance. Moreover, three in ten workers entering the work force today will become disabled before retiring. Without a doubt, most people own life insurance to provide income for their loved ones in the event of a premature death. However, death due to the big three: hypertension, heart disease, and diabetes have dropped by thirty-two percent. Disabilities due to these conditions are up by fifty-five percent.

How then can disability insurance provide the type of protection you need. The benefits for this type of insurance will help cover monthly living expenses when you are sick or hurt and unable to work. If you are a small business owner, disability insurance will cover your monthly business overhead expenses until you return. This premium is tax-deductible for the small business owner.

Here are some important things to consider when pondering the purchase of disability insurance:

• Age is a primary factor in determining the premium
• Most disability policies are issued for clients between the ages of 18 and 60.
• And, depending on your case, financial documents may be required.

Knowing this ahead of time will make the process move smoothly and satisfactorily.

Keep up to date with timely financial tips and subscribe to the free newsletter. Visit http://www.youcontrol.blogspot.com Will Barnes is a business-financial consultant and therapist based in Illinois.

Article Source: http://EzineArticles.com/?expert=Will_Barnes

Business Disability Insurance 22 - The Effect of Disability of a Partner of Partnership

By Kyle J Norton

When one partner becomes disabled, the other partner must carry the entire business burden. Also, the contribution to the profit of the disabled partner to the partnership no longer exist causing many problems to the partnership, such as:

1. Partnership will have to continue to provide income for the disabled partner from its revenues.
2. Surviving partner will usually require an increased income for the added responsibilities as result of more works.
3. Some customers may believe that the partnership will be hard-pressed to survive without the business knowledge and leadership of the disabled partner causing them to look for another supplier of products and services formerly purchased from this partnership.
4. When a partner is disabled, there will be less revenue to pay interest to the bank and other financial commitments.

If the business continues to be successful, they may decide to continue to provide remuneration to the disabled partner until they are able to return to work. Of course, in this situation, the healthy partner must take into consideration

1. The disability may be a prolong for a period of time
2. What will happen if death occurs.
3. Sometime,the partnership business may not be able to wait for the return of the disabled person.

There are some solutions:

1. Lost contribution of disable partner will be picked up by other partners.
2. Hire a replacement.
3. Lost contribution are piked up by other employees.
4. Withdraw money from sinking fund that has been set aside for such purposes.

All of these solutions demand increased cash needs before or after the disability and they can cause a major disruption to the business.

In fact, the disability income obtained from disability insurance is the cheapest way to provide the best solution, because it provides cash that makes it easier for the partnership to

1. continue to pay income to the disabled partner.
2. allows for replacement of the disabled partner, if necessary.
3. helps guarantee that operating expenses will be met.
4. creates confidence both inside and outside the firm.

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://medicaladvisorjournals.blogspot.com/
http://businessinsurance22.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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Tuesday, October 13, 2009

Update Oct.. 13 ,2009 All About Business Disability Insurance By Insurance Experts

Business Insurance Costs, Don't Cut Corners
By Carmel Baird Platinum Quality Author

When we go into business for ourselves, either purchase an already existing business or start a business up from scratch, it is usually because we have a flair or it is our trade. That is the part of the business we know very well. There are many areas we will find ourselves not knowing all the ins and outs and an important one of these areas is the business insurance. It is also important not to cut corners with your business insurance costs.

Business insurance for small to medium businesses can be like a minefield but you need to know you have the right cover so that all areas of your business are protected sufficiently. There is insurance for these size businesses called a Business Owners Policy or BOP.

This type of insurance package combines protection for all the main property and liability risks you could face in one package. Of course you can obtain all these covers separately if you wish. The business insurance packages were developed for small to medium sized business that had similar risks. A larger company would normally customize their policies to suit their circumstance.

Business Insurance Packages for small businesses, would include:-

1. Insurance cover for the property, which included the buildings (if you own them, if you are leasing the premises then the owner of the building carries this insurance) and the contents, this includes the fixtures and fittings you have installed to set up your business and you would need to make sure about the stock you have on hand. A business carries basic stock normally, so you would be asked to nominate a value. If you have peak periods, like holiday trading where you carry extra stock, then this is the value you should nominate, as disasters don't pick normal trading times to hit.

2. Business interruption insurance, this covers any loss of income that results from things like fire or other catastrophes disrupting the operation of the business. This could also cover any expense for you having to run your business from temporary premises.

3. Liability protection, this will cover your businesses legal responsibility for any harm caused to anyone by you or your employees during the operation of your business. Things like injury to persons or property caused by defective products or faulty services and installations.

What is not covered by these type of business insurance packages are professional liability, worker's compensation, health or disability insurance and auto insurance. Separate policies are needed to cover these.

When you are in business, having an independent insurance agent or broker can be very beneficial. Getting to know this person and them getting to know you and your needs for your business insurance, will take so much pressure from you and as this is their business to know the insurance field, then they will make sure you have the right coverage. There are areas you may not think of that need cover

You will need to keep your business insurance broker informed regarding any changes to your business, like expanding, downsizing, major purchases, employing more staff or staff reductions or you may change your premises. This will ensure you have the right insurance coverage to suit your needs.

Ask about higher deductibles. You could save on your insurance premiums by electing to pay higher deductibles, the higher this figure is, the less you pay. Depending on your circumstances this could be false economy, so make sure you understand what your broker tells you about this area of a policy.

There may be other ways to reduce your premiums too, so follow your insurer's recommendations for workplace safety and disaster preparations.

The important thing is to get the right business insurance at the right price and for the right coverage so you have all the protection you need.

Article Source: http://EzineArticles.com/?expert=Carmel_Baird

What to Look For When Comparing Disability Insurance Company Ratings
By David Wilkenson Platinum Quality Author

Rating disability insurance companies is important to ensure that you are only investing in the best policies that can back you up financially. There are certain points to follow in order for you to assess and compare the reliability and performance of the insurance company.

When you are bombarded with a variety of benefit options, business insurance promises, and lifetime pension opportunities, use these features to eliminate other companies that do not serve the best of your financial and professional interests.

Disability is a boon, especially to starting business owners and beginning employees. Your presence is virtually the most important factor in keeping the business running and making a living; and without good and qualified disability insurance, your chances of returning to work may be slim. Some features will be helpful in rating disability insurance companies, in order for you to choose only the best, in accordance to your needs and preferences, during periods of disability.

Most companies are primarily rated on their financial strength, which pertains to the funding that allows compensation to policyholders. Financial strength is the foundation of the policy, so you need to know how much funds are allocated for certain disability benefits and quote preferences. You would not want to keep paying for a premium if you know financial security is compromised or jeopardized because of the company's lack of funding.

Health insurance rating analysts are available to help you determine exactly the financial strength of your chosen insurance company. Analysts also have independent companies; and all you need to do is write a letter and pay a certain fee and the rating company will deliver an insurance rating system that depicts essential information about your disability insurance company, to help you know its strengths and weaknesses.

Policy benefits are also included in most insurance rating systems and these show you the current options you have with your existing disability insurance company and rate it against other companies, which, in turn, will leave you only with the best offers to avail of. Provisions governing the whole insurance policy are also indicated, which states updates and better options and preferences in benefits and waiting periods, tax exclusions and advantages, and many more.

There are guidelines on how to rate disability insurance companies, based on financial strengths, insurance benefits, policy specifications, and time periods. Some companies may claim to have scored high in every feature but, the truth is, you always get what you pay for in insurance.

You may have paid a lesser premium with more benefits without knowing. Benefit periods may have been prolonged or that benefits were made taxable, so make sure that you have checked every feature as you plan your disability quote.

Most top-rated disability insurance companies are excellent when it comes to financial strengths and provide immediate reimbursements. They rank high in their ability to pay under insurance policies and agreements.

Other special features are their excellent skills in handling senior policies, investment strategies, business ventures and operations, and underwriting commitments. Services should be very satisfactory and they all should simply have the resources to deal with the most severe economic conditions with less risks overall. These added features are determinant in guiding you in boosting your disability insurance company ratings.

David Wilkenson is a disability insurance specialist and contributes to WealthProtector.NET, a website that offers information on getting the best long term disability insurance quote.

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Disability Insurance For Fee For Service Professionals
By Steven Crawford

The Risks of A Long Term Disability

Let us first define what a "fee for service professional" truly is. There are thousands of possible occupations that could use this tag, the important part for this article is that you are clearly able to distinguish between a professional who generates income based upon his or her ability to perform a service, and somebody who is going to earn a salary for the year simply by being employed. People who have occupations that result in income only when he or she performs the duties of their occupation are considered fee for service professionals. Physicians only get paid after they have seen patients and treated them, lawyers get paid for working with clients on all sorts of legal matters, realtors get paid only when they sell a home, and consultants get paid for working with their clients. The systemic problem we have is that so many professionals don't realize just how vulnerable their financial worlds are. One long term disability could wipe out all of their savings in a short period of time, and most professionals don't realize that without them going to work their is no further source of income.

Some Professionals Understand

It is not entirely fair to say that all fee for service professionals don't understand how vulnerable they are. While some occupations seem to walk around with blinders on like consultants, salesman, and attorneys, physicians and nurses all understand just how vulnerable they are. There is a reason physicians buy disability insurance more than any other occupation, they see how people become disabled every day. While a computer consultant may think that if they can think and type that they can work, and physician knows that is just not true. Disabilities are most often illness claims, not accident claims. Many professions think of becoming disabled from a car accident or other accident, reality is that most claims come from illnesses like cancer, diabetes, back problems, heart disease, and hundreds of other diseases. Every professional needs to know that a disease does not care what you do for a living, and will most likely disable everybody in the same way, regardless of what you do for a living. I don't know any computer engineers that are still able to generate new business, and perform consulting services while dealing with something like ALS, Parkinsons, or cancer.

What to Look For as a Professional

There are a decent amount of quality disability insurance policies on the market today. Most of the good policies are Non-Cancellable and Guaranteed Renewable, and I believe you should also own a pure own-occupation definition of total disability. The real key, in my honest opinion, is the residual disability benefits offered to you. You need a disability insurance policy that has a very long recovery benefit, and most of the major carriers differ greatly when it comes to the recovery benefit. While many carriers have Non-Can benefits, and a few good one's also offer a pure own-occupation definition of total disability, there are only a couple that have a recovery benefit for the entire benefit period. Most disability insurance companies have to specify their recovery benefit period in the contract. Some will offer 6 months, some will go out to 2 years, but the best have a residual disability benefit that allows for an unlimited recovery benefit.

Ask Yourself One Question

If you were totally disabled for a period of one year, and one day you were miraculously recovered back to work full time, how long would it take you to achieve your pre-disability earnings level? Many fee for service professionals, when faced with this question, realize it would be a matter of rebuilding their entire business again. Clients and patients typically cannot wait for you to recover from your disability, and end up moving on to your competition while you are disabled. It may have taken you a decade to achieve the level of earnings you had before you were disabled, and it may be another decade before you get back to that level again. Many times you end up starting over when recovering from a long term disability, or even worse you may never financially recover. This is the exact reason why fee for service professionals need to have an individual disability insurance policy that has an unlimited recovery benefit. An unlimited recovery benefit will allow this person to receive monthly disability payments every month while they set back to rebuild their business.

Scary Thing About Some Policies

The scary thing about some disability insurance policies is that they require a loss of time or duties in order to pay any residual or partial disability benefits. Make absolutely sure that the disability insurance policy you end up purchasing does not require a loss of time or duties in order to pay a recovery benefit, or residual disability benefit. If the policy requires a loss of time or duties, when you are back to work full time the disability benefit would be over. As we just reviewed, it may be years until you financially recover, so make sure to buy a disability insurance policy that will pay you until you financially recover with an unlimited recovery benefit, not just until you physically recovery.

Steve Crawford is the President of Guardian Disability Insurance Brokerage, a firm specializing in the sale of individual disability insurance to professionals across the United States. They are the largest disability insurance presence on the internet, and have been in business since 1997 selling disability insurance on-line.

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Wednesday, September 23, 2009

Update Sept. 23 ,2009 All About Business Disability Insurance By Insurance Experts

Disability Insurance - The Often Forgotten Protection
By Will Barnes

Here are some important things to consider when pondering the purchase of disability insurance:

Knowing this ahead of time will make the process move smoothly and satisfactorily.

Keep up to date with timely financial tips and subscribe to the free newsletter. Visit http://www.youcontrol.blogspot.com Will Barnes is a business-financial consultant and therapist based in

Disability Insurance - What If You Are a Business Owner and Cannot Work
By Lance Winslow Platinum Quality Author

Entrepreneurs are almost always irreplaceable when it comes to small business, if they get sick or become disabled the business fails, their income dries up and they end up in bankruptcy. But, there is insurance for such things; disability insurance protects the income of a business owner, individual or entrepreneur that gets sick or hurt. This type of insurance can save a business by paying its bills, as well as the individual's personal bills. Income disability insurance can be a life-saver.

Surprisingly enough, this type of insurance is not as expensive as you might think. Why? Simple, because most business people are so busy working they never have time to get ill and most of them work even if they are hurt and thus, would never need to utilize the insurance unless something devastating happens and that is very rare with that type of individuals, thus, it is a very good risk for the insurance company and a profitable line of insurance to offer.

Of course, a business owner must be careful when buying this type of insurance and know what is covered, some policies have some very interesting criteria as to how and when they will release the funds. Some only give you 50% of the income you made prior to the disability and thus, you will not be about to pay your bills in many cases, this is quite serious, of course the insurance company figures this will get you back to work faster (an incentive).

You must also watch the delayed periods the policy stipulates such as the time between payouts and the date at which you are officially deemed disabled. Please consider this type of coverage if you own a small business.

"Lance Winslow" - Lance Winslow's Bio If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net

Article Source: http://EzineArticles.com/?expert=Lance_Winslow

What If I Get Sick Or Become Disabled As a Business Owner?
By Ronald Filian

Before you say that it could never happen to me, consider the hard facts. According to the Disability Management Source book, severe disabilities have increased 400% over the past 25 years between the ages of 17 and 44. Before age 65, one in seven people will become disabled for five years or more.

What would happen to your business if you suffered a stroke or an accident and you were bed ridden for six months to a year?

As a business owner, you need to take the subject of disability insurance very seriously. When you become sick or disabled, you are still liable for all of the debts of your business. You could lose everything you own, everything you have worked so hard to create. Business owners are not typically covered by state mandated workers compensation. A sudden illness or injury without disability income insurance could be devastating for your life and your business. This is insurance for your most important asset, the ability to earn an income and pay your debts.

An individual disability insurance policy will pay up to 60% of your current income. However, it is difficult for a business owner to get the true coverage they need, as you have to prove up your income via tax returns or W-2. Another caveat with individual disability plans is the ability to qualify for the plan if your business is a high-risk industry (typically manufacturing) the premiums out weigh the benefits. If you do qualify for a policy the premiums may be more expensive than the benefits you may never receive.

Disability policies guarantee benefits for a certain period of time. This is called the benefit period and can be anywhere from two years to a lifetime of coverage. The most common benefit period is two too five year benefit periods. In addition, they usually pay for any training or rehabilitation that you may need to help you get back to work. All disability policies have a waiting period until you start receiving benefits; this amount of time is known as the elimination period and ranges from 30 to 365 days. If you pay the premiums with after-tax dollars, the benefits you receive are tax-free. If your business deducts the premiums, then your disability benefits are taxable income.

When determining your disability insurance needs, be sure to consider any costs, expenses or liabilities related to your business and how they will be handled. A disability buy-out insurance policy should be part of a well-crafted buy sell agreement to protect all owners. We can advise you on how to combine this coverage into one key person policy with disability income and a cash reserve account at an affordable monthly premium. By providing this protection you business will have funds available if and when the "what if" happens to you.

Since 1992,Mr.Filian has been consulting the business owner client and passionately helping people in the best capacity possible. His experience brings a wealth of knowledge and has earned him a reputation as a trusted business advisor for many throughout the United States. Mr.Filian holds licenses in Business Brokerage,Commercial Finance,Commercial Real Estate and Insurance. Mr.Filian currently serves as president at Chicago Business Consultants Group,a multiple disciplinary firm. For more information visit us at http://www.MidMarketAdvisors.com or call 847-839-8810

Article Source: http://EzineArticles.com/?expert=Ronald_Filian

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Saturday, August 15, 2009

Update Agust 15,2009 All About Business Disability Insurance By Insurance Experts

Part-Time Lawn Mowing Business While Working a Regular Job
By Sherri Joubert

No matter what the economy, the grass still grows. There is always someone near by who needs their lawn mowed and cannot do it themselves. These folks have a problem and you, the full-time employee wanting to start a part-time lawn mowing business, have the solution. They can pay you to mow their yard. Problem solved.

I often get the question of whether you can start your lawn mowing business part-time in the evenings and on weekends and keep your full-time job. The answer is a big yes!

The question is can you do it? If you have lots of energy, enjoy being outdoors and working in your yard, and can handle just 5 to 10 extra hours of physical work each week, you can start a part-time lawn mowing business and keep your regular job.

People who work 12-hour rotating shift schedules are in a terrific position to run a lawn mowing business part-time while keeping their full-time jobs because they have so many days off.

Marketing
First, you need to find some customers. Write a flyer using word processing software, print it, take it to your local copy shop, have 25-30 copies made, and distribute them around your neighborhood within walking distance of your house. You may want to use a half-page flyer so you can distribute to 50-60 houses. Include what you offer the prospect (lawn mowing, edging, cleaning off the concrete), your name, best phone number to contact you, your address so they know you are a neighbor and how much you charge. Since you are new to the business charge on the lower end of the average rate other lawn care professionals charge in your area. Five dollars cheaper than average may get your neighbors to stop using someone out of the neighborhood and start using you instead.

Another reason to start with your neighbors is they know you or know of you and we all want to help other people, especially people we know. Since these folks are close by, you get to go out, knock on doors and meet your neighbors while marketing your business to them. Smile, introduce yourself and tell them which house is yours or what street you live on and get to know a little about them and some things you might have in common. Hand them a flyer at the end of the conversation and move on to the next house.

Keep this up until you have at least one person ready for you to go home, get your equipment right now, come back and work that day and are pulling out their checkbook to pay you. If this happens, stop marketing that day, service your new customer and earn some money. Continue marketing the next day.

When you have the number of customers you think you can handle, stop marketing daily and only doing a little occasionally or when someone asks for your information. You will need to keep a few flyers on hand to give out. Be on the lookout for yards that overgrow and see if a lawn service comes to mow them. These folks may need someone closer who will service their lawn regularly. Be sure to visit them and ask.

Equipment
Do not buy any commercial equipment or go into debt. You only need the mower you use on your own lawn, a gas-powered string trimmer and blower to get started. If you have an electric-powered string trimmer and blower, you can still use them, but make sure the customer knows you will need access to an electric outlet and you will need a very long extension cord.

Alternatives to gas and electric-powered trimmers and blowers are the cordless rechargeable models. They are less expensive than their gas-powered cousins, cheaper to operate and much more environmentally friendly. If you have electric equipment that requires an extension cord, you will want to replace it with cordless electric or gas-powered equipment as soon as you earn enough money mowing to do so.

Starting within walking distance of your home eliminates the need for a truck or trailer to haul equipment to job sites keeping costs down. If you live within walking distance of the job you can put your equipment and gas can in a wagon or cart and pull your lawn mower along by hand. If you are willing to do this extra manual labor you are more likely to succeed because you are not afraid of hard work and not prone to overspending.

Earnings
One of the biggest reasons to have a part-time lawn mowing business is you make significantly more money for the time you spend working than at most other part-time endeavors.

If you charge $50 to mow the grass, edge and clean up and you can do 5 lawns after work and on weekends each week, you will earn $250 per week. You will need to set 15% of your revenue aside after expenses (gas, parts, repair, replacement equipment, etc.) for self-employment taxes which you will need to pay each quarter. If you spend $9 on gas and save $36 for taxes, your net weekly earnings will be $205. Six weeks of hauling your equipment by hand will build physical strength and allow you to accumulate about $1230. You could also resubmit your form W-4 at work to take the correct amount of extra money out of your pay checks to cover these taxes. However, if you are trying this to determine if you want a full-time lawn mowing business I recommend you become familiar with paying self-employment taxes quarterly.

After 20 weeks of mowing 5 lawns per week you will have netted nearly $4,000. It will be less than this because your equipment will need maintenance and repair. That will not cost more than a few hundred dollars, so you will still have around $3,700 if you save your profits.

Now you will have the cash to buy a good used commercial lawn mower. Once you have a commercial mower you will be able to increase the number of yards you can mow per week in the same amount of time it took with your residential mower, increasing your revenue. You may be able to mow 10 yards per week instead of 5, so your gross revenue will jump to $500 per week. After another 10 weeks you may have enough cash to buy a used trailer to haul your commercial equipment.

Remember that in many areas there are only 3 mowing seasons or about 40 weeks of steady work each year. If you spend the first 40 weeks earning enough to get some commercial equipment and increase your customer base, your second part-time year will be mostly profits.

Two years part-time in the business will allow you to decide if you want to start mowing full-time. You will know it is time to go full-time when you are turning customers away because you do not have time to service their yards and if you could take on those customers, you would earn more annually than at your full-time job.

Earning more means earning more than your current annual pay after taxes plus paying for the benefits you and your family need, like health insurance. If your spouse works outside the home, he or she may carry the family benefits leaving you free to earn lots of cash. You will have to save for retirement and pay your own disability insurance even if your spouse can provide the other benefits. Few companies offer spousal retirement or spousal disability coverage.

If you are willing to work during your off hours and not spend money on equipment you do not need, you can work part-time mowing lawns and earn a lot of extra money. You may also be able to eventually leave your job and run your business full-time.

Learn how to start a full-time lawn mowing business or a part-time business while you continue working your 40 hour per week job. Learn how and when to purchase equipment, how to estimate jobs, and keep the books for optimum profits and minimum taxes. Visit the commercial lawn mowers blog today!

http://commerciallawnmowersblog.com/

by Sherri Joubert

Article Source: http://EzineArticles.com/?expert=Sherri_Joubert

Incorporating - LLC, S Corp, Vs C Corp
By Frank Rodriguez Platinum Quality Author

If you run a successful small business you may have thought about incorporating. You have probably heard of the many benefits that incorporating offers a small business owner, but you always heard that setting up a corporation was both expensive and timely. The way it used to be was you would have to go to a qualified attorney specializing in incorporating small businesses. Thanks to the many online incorporating resources available today, incorporating can now be set out at a reasonable cost, and with relative ease. The key to setting up a corporate entity is guidance, which allows you to submit the proper forms to the proper agencies. There is no need to pay an expensive attorney to fill out those forms for you; you can do it yourself with a little bit of research.

The most difficult part of incorporating your business is not the incorporating process itself, but rather choosing an appropriate entity that is suitable for your needs. Some of the common choices include a Limited Liability Company (LLC), an S corporation, or a C corporation. This is not a one size fits all choice, what might be appropriate for one small business owner, might be the opposite of what another small business owner needs. You will have to do a little bit of research, as each corporate structure has its positives and negatives. If you take a look at a corporate entity table, you will be able to weigh your needs with the corporate structure that is right for you.

The first corporate structure will take a look at is the C Corporation. A C Corp is what you think about when you think big business. C corporations are probably most suitable for large-scale corporations. The reason being is that they are the most complex to operate. You must hold annual stockholder and Board of Directors meetings, and keep track of corporate minutes. In addition to the more complex record-keeping C corps are the most expensive corporate structure to operate. You will have to file to different tax returns, one for yourself and one for your corporation. Depending on your state you may have to pay additional taxes, like in the case of California. It's also important to realize that double taxation is a possibility, without proper planning, this adds to your costs. Now, these negatives don't come without their positives. C corporations offer the most benefits of all the corporate structures. You get full deductions for health and disability insurance. Full deductions for medical expenses, above and beyond any existing coverage. Stock options are treated favorably, due to capital gains. Moreover, life insurance, pension plans, and dinner allowance are just some of the many benefits available.

The S Corporation offers many of the fringe benefits associated with C corporations, but without a lot of the headaches. You don't have to deal a double taxation, and income and/or losses flow directly through to the owners. You are, however, limited to fewer than 75 stockholders, the stocks must be United States owned, must be a domestic corporation, and only offer one class of stock. Much like to C Corporation you must keep corporate minutes, and you must hold stockholder and Board of Directors meetings annually. The most attractive benefit the S Corp offers is the self-employment tax benefit. With S corporations you can save up to 50% on your Medicare and Social Security taxes. If you make more than the $102,000 (2008 limit) your Social Security savings will be nonexistent.

The Limited Liability Company, or LLC, is popular for many small businesses, as it is the easiest to administrate. You do not have to hold board of director meetings, stockholder meetings, or keep track of corporate minutes. LLC's offer superior liability protection. There are also no restrictions as far as member numbers, foreign investors, like the case is with an S corp. The Limited Liability Company is the preferred choice when it comes to businesses that deal in real estate. Real estate gains are taxed at the capital gains rate within an LLC, whereas C corporations are taxed at the corporate tax rate. Now, the downside to an LLC is that you don't get the self-employment tax benefits. So, if you make considerably less than the $102,000 limit, you may be better off with an S corp. If you are considering a Limited Liability Company it's important to check with your specific state for LLC specific taxes.

The above corporate structures come with their benefits and drawbacks. The important thing when selecting an appropriate corporate entity is to find out what's best for your individual business. We all have different businesses, with different business needs, what might be right for one business owner might be the wrong choice for another. So, make sure to do your homework, when choosing between a LLC, C corp, or S Corp, you and your business will be rewarded.

If you'd like more information on incorporating your small business, you can visit the site for specific details. For more on choosing between an LLC, C Corp, vs S Corp structure you can get more details on that as well.

Article Source: http://EzineArticles.com/?expert=Frank_Rodriguez

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Tuesday, August 4, 2009

All About Business Disability Insurance By Insurance Experts

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All About Business Disability Insurance

Sunday, December 27, 2009

Update Dec. 27 - 2009 All About "Business Disability Insurance" By Insurance Experts

Tuesday, December 8, 2009

Update Dec. 08 - 2009 All About "Business Disability Insurance" By Insurance Experts

Thursday, November 19, 2009

Update Nov. 19 - 2009 All About "Business Disability Insurance" By Insurance Experts

Sunday, November 1, 2009

Update Nov. 01 - 2009 All About "Business Disability Insurance" By Insurance Experts

Tuesday, October 13, 2009

Update Oct.. 13 ,2009 All About Business Disability Insurance By Insurance Experts

Wednesday, September 23, 2009

Update Sept. 23 ,2009 All About Business Disability Insurance By Insurance Experts

Saturday, August 15, 2009

Update Agust 15,2009 All About Business Disability Insurance By Insurance Experts

Tuesday, August 4, 2009

All About Business Disability Insurance By Insurance Experts

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