All About Business Disability Insurance: Update Nov. 01 - 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)

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.

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

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top