Self Employed and Business Executive IQ: Why Owners and Executives Need Disability Insurance

Why is it essential for owners and executives to protect their incomes with disability insurance?

Disability Insurance is vital not only to protecting yourself and loved ones, but it is necessary to keep your company thriving. Who will run your business if you become disabled? Will the company and career you built become obsolete? Will your employees endure hardship? As an Executive or Business Owner, are your dreams, lifestyle and income protected if you are unable to work? Whether you experience a short-term disability or long-term disability, the odds are pretty high and results are life devastating.

Disability not only jeopardizes your personal financial well-being, but it also places your business and employees at risk. Often those who are self-employed are devoid of any kind of income protection. Instant Disability Insurance Quote is here to share our Disability Insurance IQ and help explain the benefits and necessity of Disability Insurance for Business Owners and Business Executives.  The example below illustrates how disability insurance policies protect business owners and their businesses.

Brown-Fisher Printing:

Gavin Brown and Sam Fisher were co-owners of a printing business. Gavin was responsible for daily operations and print production, while Sam handled the bookkeeping, hiring and customer relations.

Unfortunately, Gavin was involved in a serious motor vehicle accident. He broke his pelvis, ruptured his spleen and shattered his left ankle. He would recover, but his doctor estimated that due to his temporary disability, it could be up to a year before he’d ready to return to his regular job.

Fortunately, these two business owners had the foresight to purchase a disability insurance policy with key person coverage that paid for personnel replacement expenses. So, Sam was able to hire an experienced replacement to cover Gavin’s duties without placing a financial burden on the business. Gavin’s disability policy also included a rehabilitation benefit that paid rehabilitation costs.

Thanks to his ample disability insurance benefit, Gavin focused on making a full recovery without worry about his business. His family, home and assets were easily sustained by his disability income. 

Follow Gavin and Sam’s smart example!

Pump up your paycheck protection IQ. Get disability insurance to keep you, your family and your business afloat if an accident or illness occurs. Want to learn more? Visit the education section of our site for articles, a disability insurance glossary of terms and an online disability IQ quiz. Or, get your instant disability insurance quote now!

Do any of these points describe you? If so, learn more about disability insurance today!

You have less than two years of income saved for emergency purposes (excluding retirement or college savings).

You are a primary or secondary breadwinner in your family.

Loved ones (children, parents, or others) rely on you for financial support.

Other non-earned income (such as interest or dividends) will not adequately cover your living expenses.

You have no one to rely on to support you in the event that you lose your earning power (for example, you’re divorced, single or do not have affluent and generous family members).

It would be difficult to achieve your long-term savings goals such as retirement if your paycheck stopped.

You would prefer not to downsize and change your lifestyle in the event of disability.

You can’t afford to live on 43% of your current gross pay (the amount provided by most long-term group disability plans after taxes)

 

*While Gavin Brown and Sam Fisher are fictional, their scenario reflects the very real disability dilemmas faced by many business owners every year.