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 Disability Overhead Expense Planning - As a business owner there is no worse fear than becoming disabled! We all know that 'Good Luck' alone does not build a successful business. However 'Bad Luck' due to a long term disability could sure end one quickly! Personal income is either drastically reduced or discontinued which is bad enough, but then a disabled business owner must also continue to pay overhead expenses such as rent, normal bills, employee salaries and more. This can kill a business. If you were disabled and your business had to continue without you for a while, how would the ongoing expenses of operation be paid with diminished or no income?
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You may think that the business will be able to get by in your absence, but that is a humble assumption. Very few businesses can actually continue without interruption during the total disability of an owner. In the case of Professional businesses, only another licensed Professional can continue the practice in order to keep the doors open. What are the alternatives? Going to the bank for a business loan is difficult when business is good, never mind after a Principal or business owner just become disabled.
First, find out what expenses qualify for coverage and how much 'Disability Overhead Expense' insurance you need. Click here (or on the toolbar) to use our calculator to determine exactly what the monthly cost to keep your doors open for business actually is. Disability Overhead Expense insurance is designed to reimburse a Professional or business owner eligible expenses during a total or partial disability. The business owns the policy, is the beneficiary and pays the premium, which are tax deductible to the business. Having proper Overhead expense coverage allows a business owner to concentrate on getting better during a period of disability without feeling the pressure of having to return to work too early. Most importantly, Overhead expense coverage GUARANTEES that you have a practice or business to return to after your disability has ended!
Protect what you have worked so hard for! Click here (or on the toolbar) for a Disability Overhead Expense quote request form. Or call our office for a quote and to discuss your particular situation.
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Key Employee Planning - The success of any business normally is directly related to the people it employs - the 'human value'. Many small to medium size businesses have 'Key Employees', whose talents and efforts have a more direct effect on profitability. Smaller businesses are at more risk if a 'Key Employee' suddenly is no longer able to work, as they normally do not have multiple employees at the same skill and talent level. If a 'Key Employees' departure is planned, as in the case of retirement or voluntary termination, you can prepare for the loss and take steps to minimize its impact. However, if the Key Employee becomes disabled or suddenly dies, the loss is unpredictable and leaves your business exposed to financial risks. Key Employee Life and Disability insurance can help protect your business against these losses and exposures.
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Key Employee Life Insurance - Should your business loose a Key Employee through death not only have you lost a friend and business associate, but you have lost one of the greatest assets of your business. A Key Employee life insurance policy is owned by the business and the business is the beneficiary of the policy. The generally income tax free death benefit (AMT is sometimes triggered) of the policy can be used to insulate the company from losses due to the loss of the Key Employee and help find and train a replacement.
The type of key-person policy you purchase depends upon the needs of your business, the type of protection desired and the amount of premiums the business is able to pay. Your options are Term Life, Permanent Life or a combination of the two.
Funding Key-Employee Insurance with Term Life Insurance - Term insurance generally gives you the most coverage for the least premium outlay. Level term life polices with guaranteed death benefits and guaranteed premiums are available now for 5, 10, 15, 20, 25 and even 30 years. Click here (or on the toolbar above) for a real time term life quote.
Funding Key-Employee Insurance with Permanent Life Insurance - Permanent life insurance can level the premiums and hedge against the high cost of term life insurance in later years. Permanent insurance offers ongoing coverage, without an expiration date or significant premium increase and competitive cash value accumulation. Policy cash values grow TAX-DEFERRED at a competitive rate and are available for business cash flow needs. Permanent life insurance for Key-Employees can also be used for a double need. Coverage to protect business profitability and the cash values can be used in the future to provide a 'supplemental retirement plan' for the Key Employee. Which of course adds incentive for the Key Employee to be productive adding to profitability. The plan also helps retain the Key Employee until retirement. Click here (or on the toolbar) for a permanent life insurance quote request form.
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Key Employee Disability Insurance - Should you loose a Key-Employee due to a disability, the loss is the same as death, or possibly greater should their salary be continued during their disability. Another way a business can protect itself against the risks associated with the loss of a Key Employee is with 'Key Employee' disability insurance.
A 'Key Employee' disability insurance policy typically names the employee as the insured and the business as the owner, payer and beneficiary. The benefits of the policy are paid to the business, in order to compensate the business for the loss of profits while the 'Key Employee' remains disabled. Benefits are available when they are needed most, the plan is easy to administer and is very economical. Click here (or on the toolbar) for a Key Employee disability insurance quote request form.
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