Long-Term Disability Insurance for Business Owners

Disability Income

Long-term disability insurance is an important consideration for business owners. It provides financial protection in the event that the business owner becomes disabled and is unable to work. The long-term disability insurance will help to cover the costs of lost income and expenses associated with the disability, such as medical bills. Having this coverage in place can give business owners peace of mind, knowing that they and their families will be taken care of if they become disabled. Business owners can also protect their business by making sure that key employees have long-term disability coverage. This can help to ensure that the business can continue to operate even if a key employee becomes disabled. Long-term disability insurance is an important consideration for any business owner, and it is essential to have the right coverage in place to protect yourself, your business, and your employees.

Frequently asked questions

Small business owners, sole proprietorships and 1099 independent contractors face a unique set of financial challenges. Of course, they have to have a certain personality – a level of risk tolerance, if you will – to be an independent contractor or an entrepreneur. They like living life on the edge. Taking chances is how they grew their businesses, in many cases. But they’re only willing to push it so far.

They can’t risk jeopardizing their income – and their entire business – if they should become unable to work due to injury or catastrophic illness. Disability insurance, sometimes called income replacement insurance or simply, disability income, offers business owners peace-of-mind that they will have the money to continue living, paying their mortgage, and providing for their family, even if they get ill or injured.

The same way group long-term disability insurance helps corporate employees after their TDB, TDI or DBL disability insurance runs out, disability insurance for individuals provides 1099 contractors and small business owners with income replacement if they can’t work due to illness or injury.

With the rising costs of healthcare, especially for small business owners, an illness can present unbearable financial hardship. Combine the costs of medical bills with a loss of income, and it can lead a business owner straight into debt or even bankruptcy. The stress of these unpaid bills – and an inability to care for their families –makes it harder to fight a disease or manage pain after an injury. It’s a vicious cycle that only the peace-of-mind provided by individual disability insurance can resolve.

Choosing the right disability income insurance protection isn’t easy. If you ever have to file a claim, you want to know your broker will serve you with understanding and attentive care during this stressful time. You also want the peace-of-mind of knowing that your insurance will provide the money you need for as long as you are disabled. Therefore, you want a policy with the following features:

  • Your rates won’t go up and your policy won’t be canceled as long as you pay your premiums on time.
  • You’ll receive a cost-of-living increase if you are disabled longer than 12 months, and will continue to receive those increases annually for as long as you are disabled.
  • You have the option to increase your coverage as your income increases, so you and your family can maintain your current standard of living or cover added medical costs if you are disabled.