All About Business Disability Insurance: Update Dec. 08 - 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 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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