Small business owners are some of the most devoted and hard working people that exist. They work long days and do whatever it takes to make sure that their business will continue to prosper, be profitable and allow them to provide for their families.
Small business owners tend to be the CEO, the books keeper, the human resources department, marketing specialist and many other things for their business. Without the business owner, the business is only as good as what it can create self-standing, which is usually not very good. For most businesses without the business owner, the business may not be able to sustain itself for very long. For this reason, it is very important that small business owners look into Disability income protection.
Disability income protection is a product that will continue to provide you an income stream when you are unable to work due to an illness or injury. For the small business owner, Disability insurance is an absolute must. Your entire business relies on your ability to go to work every day, and if that were to change, you may be forced to close the doors of your business.
There are two types of Disability Income protection that small business owners should consider. The first is individual Long-Term Disability insurance. This is a product that actually insures your income specifically. The level of coverage you are able to obtain will be based on your occupation and annual income. It allows most people to insure 50-65% of their annual income on a tax-free basis, (as long as premiums are paid for by the individual). If due to an injury or illness, you are unable to perform the regular duties of being a business owner, this type of coverage will insure that you continue to receive an income stream.
For the average worker, individual Long-Term Disability insurance may be enough to protect themselves, their family and their future from a financial disaster in the event that they become unable to work. For a business owner however, this may not actually be enough. If you own a business, you probably have overhead expenses that would continue regardless of whether you are able to work or not - things such as office space, office equipment, utilities and employee salaries - at least for a few months. These expenses can very well be higher than the individual Disability benefits you qualify for which could still end up forcing you to close the doors to your business and cause your family, very serious financial hardship.
Business Overhead Expense (BOE) is a product designed to protect this exact risk. BOE is a product that provides money to pay for overhead expenses while you are disabled. The idea behind BOE is to insure only those expenses that will not stop if you become disabled. The combination of having a good Long-Term Disability policy and a good Business Overhead Expense policy could very well protect you, your family, your business and your future from a financial disaster.
As a small business owner, your ability to work and run your business is the most valuable financial asset you have. It is what allows you and your family to maintain the lifestyle you do. Can your really afford not to have Disability insurance to protect everything you have worked so hard for?