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Disability and Your Business - Annuity Rates, Annuities, Annuity Quotes and Fixed Annuities
How Would a Disability
Affect Your Business?

Business owners should be prepared for the unexpected. One unexpected event is the possibility that you may become unable to work for a period of time. And because the odds are as high as 50/50 that you will suffer a disability, it's important to take precautions to protect your livelihood.¹

The effect that a disability could have on your business ranges from a slowdown in productivity to long-term changes. You can help protect yourself financially against such a predicament by purchasing a disability income insurance policy.

In exchange for the premiums paid, a disability insurance policy can provide you with a tax-free income stream while you are unable to work.

Factors to Consider
Disability insurance coverage can be tailored to meet your needs as a small-business owner. Here are some factors to consider when choosing disability insurance coverage.
 

bulletWho will be covered? You can purchase coverage for yourself, one or more key persons, or all employees.
bulletWhat types of disabilities will be covered? Some policies pay benefits for disabilities resulting from both illness and accident, whereas others provide coverage only for disabilities resulting from an accident. Policies can also be designed to pay benefits for partial and/or full disability.
bulletHow much income will be paid in the event of a disability? The amount paid will depend on your policy's provisions. The most common policies pay 50 to 60 percent of your pre-disability income.2
bulletHow can disability insurance help my business? Covering yourself and a key person can help protect the business in the event that someone essential to the enterprise suffers a long-term disability. Insurance can also be utilized to fund a buy-sell agreement.

Be Prepared 
The insurance coverage you carry can make the difference between financial security and personal responsibility for losses. Disability income insurance can provide reassurance that you and your business have some protection if you are unable to work.

1) 2004 Field Guide, National Underwriter
2) American Council of Life Insurers, 2004

 
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