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Disability Coverage Can Save Your Small Business



Disability Can Save Your Business

According to the Bureau of Labor Statistics, 14.4 million Americans were self-employed in 2014. While running your own business brings many benefits, one of the downsides is the lack of disability coverage usually provided to employees who work for bigger companies.

And, while we wouldn’t dream of failing to insure our homes, many small business owners don’t consider the implications to their business if they become ill or are seriously injured. Many small business owners need individual disability coverage.

The U.S. Social Security Administration recently estimated that a typical 20-year-old had a one in four chance of disability before the age of 67. While Social Security is a safety net, it often takes months or even years to obtain benefits approval through the current system. And once you do get it, it’s not a great deal of money.

If you depend on two incomes to pay your mortgage and run your business, what happens if your partner cannot work due to illness or accident? An individual disability plan may mean the difference between closing your business and continuing to make your monthly payments while you or your partner recover from illness or injury.

Much like life insurance, individual disability plan rates are based on specific factors such as age, gender, health, the benefit amount, and how the policy defines disability.

Even if you have an employer-sponsored plan, you may choose individual supplemental disability coverage as a bridge to transition from a full-time salary to a reduced income. For example, your employer-sponsored plan may pay 60% of your income. A supplemental plan can increase that amount for a small monthly premium.

How to Get the Coverage You Need

Your insurance agent can help. He or she will assist in evaluating your financial situation and determining how much income you will need to maintain your lifestyle after a disabling event. For many small business owners, this coverage can save the company