As a business owner, you have some unique needs for disability planning. You have your own income to protect in case you are disabled. If you actively work your business, you also have some overhead to replace your contributions to the business with another employee. If you are disabled, you will not be able to continue contributions to your retirement program. You have a number of income streams that you need to protect.
- Individual Income – protects your take home pay in case of a disability from accident or sickness.
- BOE (Business Overhead Expense) – allows for the company to receive money to pay for monthly fixed expenses that you will have to keep the company open and expenses paid while you recover. Covered expenses can include: employee wages, insurance, mortgage / rent, association dues, utilities, and many other fixed expenses that the company will need to pay if you are out ill.
- Buy / Sell – funding a buy / sell for the disability of a partner is sometimes missed in planning. A disability for an active partner can be as devastating as a death. The more active the partner in generating revenue, the more important it will be to protect that income stream to the business with disability income coverage.
- Retirement Protection – some disability companies realize that the true impact of a disability will hit you in current income and in future earnings that you cannot put away for retirement. You can cover your contributions and any matching contributions from the company.
More businesses are lost due to an unprotected disability to the owner or partner than from a death. Check out some additional information.
We represent numerous disability income companies to meet our clients' needs