All About Business Disability Insurance

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

2010-08-25T09:33:00.000-07:00

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

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

2010-08-09T07:45:00.000-07:00

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

2010-07-22T09:11:00.000-07:00

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

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

2010-07-06T07:23:00.000-07:00

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

2010-06-16T07:24:00.000-07:00

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

2010-05-26T06:10:00.000-07:00

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.

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.
Guaranteed insurability. If you are worried about medical qualifying, this type of insurance is recommended.
Compare insurance carrier ratings. Comparing insurance provider ratings will help you determine which insurance carrier is financially fit.
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.
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

2010-05-05T07:25:00.000-07:00

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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Update April 07 - 2010 All About "Business Disability Insurance" By Insurance Experts

2010-04-07T07:29:00.000-07:00

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

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

2010-03-16T04:52:00.000-07:00

Disability Insurance For the Self Employed

By Michael Kortz

As a self-employed professional, your ability to wake up and go to work every day is your most valuable financial asset - your sole source of earning an income and providing for yourself and your family. Among the many benefits of being self-employed, there are also many additional responsibilities. Protecting your income is one of these additional responsibilities. People who are self-employed cannot rely on an employer to provide them this coverage and instead must do so themselves. Prior to purchasing Disability insurance, you should consider some of the important provisions a self-employed individual should include in their Disability policy.

One of the most important provisions of a Disability insurance policy is the definition of total disability, which describes the circumstances in which a person may qualify for benefits. There are three definitions offered by insurance companies, but being self-employed, you want to be considering Own-Occupation Disability only. Own-Occupation Disability pays benefits when you are unable to perform the principal duties of your current occupation. Even better is the True Own-Occupation definition which provides benefits if you are unable to perform the principal duties of your current occupation, even if you decide to work in some other occupation. Depending on your specific duties, it may be more or less important to concentrate on obtaining True Own-Occupation vs. just Own-Occupation coverage. Whichever you decide to go with, Own-Occupation is the better definition as it covers your specific occupational duties.

In addition to a quality definition of total, there are also two optional Policy Riders that every self-employed person should have. The first is Residual Disability, which provides partial benefits for partial disabilities. As you can probably expect, partial disability claims are much more common than total disability claims. Therefore purchasing a policy that does not include Residual disability benefits simply does not make sense. In addition to adding Residual benefits to your policy, you want to make sure that this rider provides partial benefits and a recovery benefit for the full policy benefit period. Depending on your exact duties and even more importantly the structure of your business, the full benefit period option may be more or less important, but regardless, anyone who is self-employed should have Residual benefits included.

Lastly is a rider that can be referred to by many names, one of which is the Future Increase Option. This rider allows you to increase the amount of monthly benefit your policy provides in the future, regardless of any changes in your health. This rider is the only way for self-employed professionals to guarantee their insurability so that they can increase their income protection, as their income increases. Most people who are self-employed do not expect their income to go down or remain level, but instead expect it to continue to increase. For this reason, it is very important to include the Future Increase Option on your Disability Income insurance policy.

Possibly the most important detail that self-employed individuals should know, is that you must be in good health to qualify for Disability insurance. Therefore, if you are healthy now, you should not delay. Purchase a policy that includes the riders previously discussed and you will be able to protect your current income as well as your future income. The biggest risk you run, is not being able to purchase Disability insurance.

If you are self-employed and need assistance with your Disability insurance, contact the Offices of Michael Kortz. Michael has been providing financial and insurance planning services in the San Clemente area for over a decade. Visit his office or call (949) 226-8390. You may visit his insurance website at http://www.tfp8.com

About the author:
Michael Kortz, RFC, RR is a Registered Financial Consultant (RFC) who holds a degree in Economics from the University of California at Irvine. He has been an insurance broker since 1999 and has received the Health Insurance Professional designation from the National Association of Health Underwriters.

Michael offers complimentary insurance consultations for the self employed and can be reached at (949) 226-8390 or visit Self Employed Insurance Programs.

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

2010-02-23T04:10:00.000-08:00

Disability Insurance Plans

By Suhan Suresh Shukla

Humans earn their living by work. Work can be anything, any type. But, everything is leaded forward by the same motive or force, money. The ability to do work is an asset. It is what takes a human along with the pace of the world. So, while thinking of how much one can earn while working, one also thinks about what happens if he/she is not able to work. This is where the thought if disability insurance plans come along.

Disability insurance plans are a form of insurance which helps the insurer to get one's pay even when he/she is unable to work. This inability can be due to various reasons. It can be executed when the worker is ill, has any physical injury which can hamper one's work, other medical reasons etc.

There are mainly two kinds of disability plans; one is called short-term disability plans and the other is long-term disability plans. Short-term plans have less timing of insurance coverage. It might vary from 3 months to one year depending upon the kind of plan one has chosen. After the specified time is over there will be no coverage given. Most of the companies think that giving short-term insurance plans are not cost-effective. Still, this plan is the more popular one as it gives coverage in a lesser cost. These plans are very helpful to people who find it difficult to work temporarily as they get most of their usual earnings.

Long-term disability insurance plans are meant to give you coverage for a longer period of time, which varies from one year to several years. Some of them even give you coverage till you reach your retirement age. These plans are more expensive than short-term plans. But the financial benefit of the coverage is much greater than the other.

There are some other plans which give the benefit of both the kind of plans. These are a combination of short-term and long-term plans. These might come useful for someone who seeks long-term coverage in a much lesser price. Such plans are also pretty popular.

There is another classification for disability insurance plans which contain group plans and individual plans. Mostly when group plans are being made and executed, the employer decides on the coverage options and designs the terms and conditions of the plan as it is a collective thing. Group plans have got benefits on taxation. There is also a benefit of less requirement of verification of one's health situation.

The individual basis of disability insurance gives a wider choice of selection but will be monitored much more closely. This has also got a small benefit on taxation. This kind of plan is a help for people who retire early and for those who are not part of any group insurance plan.

In order to get these plans available for a person consulting a disability insurance specialist is the best thing to do. An ordinary insurance agent may not be that helpful in these cases. A specialist can give you best of what is available and make you benefit more from it.

Author Suhan Shukla is a Professional content writer who writes on several topics including Disability Insurance Plans Perth and much other which attract attention of many readers.

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Update Feb. 04 - 2010 All About "Business Disability Insurance" By Insurance Experts

2010-02-04T05:17:00.000-08:00

To read Part B. Please Scroll Down
Part B. Selecting Your Disability Insurance Broker

Part A. Learn How Your Business Can Pay for Your Insurance and Medical Expenses

By Wiley P Long

If you are self-employed, your income is subject to a 15.3% self-employment FICA tax. Added to a 28% Federal income tax and a 5% state income tax, this could leave you paying nearly 50% of your income to the government. Fortunately, most self-employed people qualify to set up an HRA or Health Reimbursement Arrangement. An HRA can enable your business to reimburse you for health insurance and out-of-pocket medical expenses, and will save you an extra $3,000 each year.

Health Reimbursement Arrangements for the Self-Employed

An HRA is simply an agreement which enables your business to cover employee's medical expenses, including individual health insurance premiums, as a tax-free fringe benefit. This tax benefit was established in Section 105 of the IRS tax code in 1955, when General Electric lobbied for a business reimbursement rule to give it more flexibility in creating employee benefits.

Anyone set up as an S-corp or C-corp qualifies to set up an HRA. If you are a Schedule C or Schedule F sole proprietor, an HRA is allowed if your spouse can work at least part time in the business. You will be setting up an employee benefits package that covers health insurance premiums, disability insurance premiums, long-term care premiums, and even out-of-pocket medical expenses such as dental coverage.

An HRA makes your taxes go down because when you get to write off medical expenses on your Schedule C, you avoid paying Federal income taxes, state income taxes, and the 15.3% FICA self-employment tax. Not only can the business reimburse you for the cost of health insurance premiums, but you can also set up the HRA to reimburse for dental coverage, preventive care, disability insurance, long-term care insurance, and other out-of-pocket medical expenses.

If you are self-employed but do not have an HRA, you can write off your health insurance premiums on your 1040, saving you Federal income taxes. But, you are still subject to FICA and state income taxes for these expenses. You are not able to write off any of the other expenses listed above.

Using an HRA with a Health Savings Account

Some financial advisors do not realize that you can have an HRA along with a Health Savings Account (HSA). You can of course. The only caveat is that the HRA cannot reimburse for expenses that could apply toward the deductible of the HSA, such as doctor visits or prescription drugs. But, it can cover any insurance premiums and preventive care.

The potential savings are substantial. Let's assume a business owner is in a 28% tax bracket, has an HSA plan, and is incurring the following expenses.

Health insurance premiums - $7,000
Preventive expenses - $1,000
Other insurance - $2,000

The self-employed business owner can write off the $7,000 premium on Federal income taxes, saving 28% of that or $1,960. If the HSA is fully funded, an additional $1,582 will be saved off of Federal income taxes and $282.50 from state income taxes. So, in total, the business owner’s taxes will go down by $3,824.50. Once an HRA is set up, the entire $10,000 in expenses listed above can be reimbursed by the business. So, the business owner would be saving a total of $2,800 from Federal income taxes, $500 from state income taxes, and $1,530 in self-employment taxes. The business owner will also get to take advantage of the same $1,960 in HSA tax savings, for a total tax reduction of $6,790.

Smart business owners take advantage of all the tax deductions for which they qualify. You can reimburse health insurance expenses from the beginning of the year, but out-of-pocket expenses only from the date your HRA begins.

By Wiley Long - President, HSA for America (http://www.health--savings--accounts.com) - The nation's leading independent health insurance firm specializing that work with a Health Savings Account.

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Part B. Selecting Your Disability Insurance Broker

By Michael Relvas

In order to purchase Disability Insurance, a person will be required to work with an insurance agent of some sort. Even if you decide to purchase DI directly from a specific company, the person you go through to purchase it must be a licensed agent. The agent you work with may be a Career Agent that is only able to represent one company or a Broker Agent who is capable of representing multiple insurance companies. If you decide to purchase your coverage from a Career Agent, it would be advisable to at least speak with a broker agent as well. Broker agents are more likely to know and properly assess what is available on the market. Essentially allowing them to know what product and provisions are truly best for your specific circumstances and occupation.

Prior to actually purchasing a policy there are a few steps you should take to ensure that you find the best option for you. The first is to gather an understanding of Disability insurance and the provisions that distinguish a quality, comprehensive policy from a basic, low-grade policy. The second thing is to find an experienced agent to ensure you are receiving quality and expert advice.

Becoming informed about Disability insurance and the important provisions to have in your policy can be fairly simple. The Internet is filled with websites providing information about Disability insurance. Although many of these sites are mostly concerned with having you complete a quote request form, there are a select handful of sites that truly provide valuable content and quality advice. The following is a list of keywords of which you should have basic knowledge when purchasing your coverage: Noncancelable and Guaranteed Renewable, Own-Occupation definition of disability, Residual Disability, policy riders, policy exclusions and limitations. Although there are other important parts to Disability insurance, learning the details associated with the listed keywords will give any consumer a solid head start in understanding the complexity of Disability insurance.

Finding an experienced Disability insurance broker is a great way of complementing your knowledge of Disability insurance. The agent you work with will be a contributing factor in the Disability insurance policy you purchase. For this reason, it is important to work with an experienced agent who can truly provide you a valued service and worthwhile advice. Although there are many ways of distinguishing whether an agent is experienced with Disability insurance, the following are two simple giveaways:

With DI, experience does not necessarily come with age and years in the financial services industry - it comes from making it a big part of one's business. There are agents who sell more Disability insurance in one year than other agents have sold over their entire careers. The following provides a fair distinction of the experience level of an agent with regard to DI:

- An agent who has sold 1-12 policies probably has very limited experience.
- An agent who has sold 12-25 policies probably has a fairly decent understanding.
- An agent who has sold 25-100 policies can be considered an experienced agent.
- An agent who has sold over 100 policies can be considered a Disability insurance expert.

The second and even more important way of knowing if you are working with an experienced agent is whether he/she tries to sell you a policy based on price, or on quality. Disability insurance is much more detailed than most people expect and having a quality contract is much more important than is the cost. An experienced or expert agent will know this and will be sure to portray this to you relatively quickly in your conversation. If your agent is saying this one is cheaper than that one, I would suggest you find a new agent. Prior to looking at pricing, your agent should be concerned with helping you understand the different provisions and the reason why purchasing a quality contract is so important.

More often than not, your gut will lead you in the right direction. If you feel uncertain about the agent you are working with, you should consider looking elsewhere. Unlike Term Life insurance, where pricing is a big factor, DI comes in all sorts of shapes, sizes and quality. When protecting something as important as your income, your family, and your future, it is worth finding a quality agent to work with.

Michael Relvas is an insurance specialist and the owner of MR Insurance Consultants, an insurance services firm in the Washington DC area. He assists professionals nationwide with information and advice on purchasing Disability insurance. If you have any questions related to your circumstances and/or are interested in reviewing your options, MR Insurance Consultants invites you to call 1-800-817-4522 or visit our Disability insurance website to learn more
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Update Jan. 15 - 2010 All About "Business Disability Insurance" By Insurance Experts

2010-01-15T04:10:00.000-08:00

Save Money on Disability Insurance Premiums As a Female Professional

By Michael Relvas

If you are a female professional that is in the market for Long Term Disability insurance, you probably have realized that disability coverage for women is fairly pricey. Due to a higher claims history with women, insurance companies usually charge 30-40% more for women than they do for men. As a female professional, it is important that you learn about the different ways that you can save on your premiums without having to sacrifice the benefits.

Most people looking for individual Disability insurance will do so either because they are self-employed or because their employer does not provide coverage for them. Whether you are a female business owner or a female professional working for a small, medium or large business, you could qualify for significant savings on your Disability insurance premiums. The following are two techniques we often use for our clients.

Multi-Life Disability Insurance Discount

The first and most effective manor in which female professionals can save money when obtaining individual Disability insurance, is by applying through a multi-life scenario. Insurance carriers offer multi-life discounts to groups of 2 or more (3 or more, with some carriers) people who will be applying for Disability coverage together, as long as they work for the same business. Having more than one applicant distributes the risk an insurance company is taking and therefore, they are willing to offer discounts as an incentive. There are two ways that women save money when applying through a multi-life scenario. First of all, each applicant will qualify for unisex rates, which can reduce female rates by approximately 30 percent. Additionally, insurance companies offer a 5 to 10 percent discount because there are multiple policies being obtained. Typically while a male professional may save 5-10 percent, a female will normally save upwards of 40 percent on their premiums by applying under a multi-life discount scenario.

Many insurance brokers/agents do not market this opportunity as much or as well as they should - perhaps because they would rather the higher commission on individual policies or perhaps because they simply do not have the knowledge base. In either case, as a savvy and informed consumer, you should ask questions about the multi-life program offered by each Disability insurance carrier you consider.

Association Discounts for Disability Insurance

Another way of saving on your Long-Term Disability insurance premiums as a woman is by researching Association Discounts that may be available. For example, one insurance carrier we work with will provide a 10 percent discount to all members of the National Association of Women Business Owners. When speaking with an insurance broker/agent, you should let him/her know about any associations you belong to or are considering joining. You may qualify for discounts that you are not aware of. In some situations, you may even be able to join simply to take advantage of the discount available.

Be careful not to mistake association discounts for association plans which are actual disability contracts provided through associations such as: American Medical Association, American Dental Association, American Bar Association, American Institute of CPAs, American Veterinary Medical Association, etc. Although plans provided by such associations may be less expensive, the coverage they provide is significantly lower quality than an individual policy. Commonly, these types of plans are specifically weak in their definitions of disability, residual benefits and often include a 24-month limitation on benefits for disabilities caused by mental or nervous conditions.

M*R Insurance Consultants is a web based insurance firm that helps consumers in purchasing Life Insurance and Disability Insurance on the Internet. Our specialists take a consultative approach to every client's circumstance providing personalized quotes, information and advice about how to obtain quality coverage at the right price.

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

Private Disability Insurance Gives You Protection in Difficult Times

By Em John

Private disability insurance gives you protection in difficult times.

Nobody likes to think of being disabled. Unfortunately when accidents happen, they quickly change your financial prospects. What are your options when you find yourself in a difficult spot? In other words, you should have a plan of action, if you do not already have, in case there is a situation where disability insurance will be required.

There are 2 kinds of Private Disability Insurance:

* Premiums guaranteed to be the same for the life of the contract, unless the benefit is increased.

* Guaranteed interchangeable where a company reserves the right to increase the insurance when the number of people in a specific category begins to increase.

Your Insurance Depends On:

* Weighing of Potential Hazards: Job Dangers and the potential for you to get injured

* Compensation: Are you looking to cover all your expenses?

* Medical History: Your current health and what medical history your family has and whether this income can be survived upon

Other factors that go into the assessing your situation, are your sex, age and province or state of residence. Also, Residual and partial riders are available for you if your situation changes and you go back to work in another job or somehow you experience a loss of income or wif you go back to work as a part-time employee, but in the same job.

So the bottom line is this:

Although no one likes to talk about getting hurt, Private Disability Insurance is critical to have during these times. Investing in a policy helps to strengthen your overall financial plan, or at least gives it a solid foundation.

Many people like to go online to get these insurance quotes. Click Here to find and compare Private Disability Insurance with the best providers. It's fast and easy. You'll save time and money.

Happy Hunting & Good Luck.

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

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

2009-12-27T06:44:00.000-08:00

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

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

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

2009-12-08T05:01:00.000-08:00

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/.

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

2009-11-19T02:24:00.000-08:00

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.

- 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

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.

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

2009-11-01T05:36:00.000-08:00

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.

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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/

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

2009-10-13T07:39:00.000-07:00

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

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

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.

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

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.

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

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

2009-09-23T08:40:00.000-07:00

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

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

2009-08-15T04:39:00.000-07:00

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

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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All About Business Disability Insurance By Insurance Experts

2009-08-04T14:05:00.000-07:00

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