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