Posts Tagged ‘business disability insurance’

The Need for Business Disability Insurance

Thursday, December 8th, 2011

  • The U.S. had 5.8 million small business employers in 2009, representing over 99 percent of the nation’s employers.
    - Small Business Administration Office of Advocacy, 2010.
  • In 2009, outstanding small business loans (under $1 million) were valued at over $685.4 billion for more than 23 million loans.
    - Small Business Administration Office of Advocacy, 2010.
  • Half of business owners do not have any disability plans in place for either themselves or their key employees (50%). 
    - The Principal Financial Group Business Priorities Market Research, January 2009
  • Nearly three quarters of business owners indicated that they or their key employees are limited in the amount they are allowed to contribute to their qualified retirement plan (73%). Yet, very few business owners offer supplemental retirement plans (83% do not offer any plans) that can help overcome this limitation. 
    - The Principal Financial Group Business Priorities Market Research, January 2009
  • About 43% of wealthy business owners (almost double the percentage of other affluent Americans questioned) said they would work to age 70 or later, but only one-third of these owners said they have written succession plans in place.
    - Private Wealth magazine, April-May 2008; survey by PNC Wealth Management, Philadelphia, PA

For more information about business disability insurance including business overhead expense, key person, group disability or individual disability insurance, contact Set for Life Insurance today!

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Insuring Your Most Valuable Asset: Your Career

Monday, May 23rd, 2011

By Lisa Johnson Mandell, Posted May 13th 2011 @ 3:12AM on www.aol.com.

Auto insurance? Check. Health insurance? Check. Home insurance? Check. Life Insurance? Check. Disability insurance? Er…not so fast. If you’re like most Americans — about two thirds — you’re about tapped out just covering your material possessions, paying student bills or saving for your kids’ future, maybe even putting a little away for retirement. You see disability insurance as a low-priority luxury.

According to a new survey from the nonprofit LIFE Foundation, only one in six working Americans (16 percent) consider their paycheck to be their most valuable asset. What many fail to consider is what would happen to them and their families should they suddenly become sick or injured, and unable to work. (more…)

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Disability Insurance to Cover Business Loans

Wednesday, April 27th, 2011

When business owners apply for a loan from a bank, oftentimes the bank wants the debt insured in the event the loan payer becomes sick or injured.

There is a specific type of disability insurance policy designed to cover these business loans.

For example, suppose a dentist is in the process of purchasing a practice for $500,000. The bank requires the dentist to insure the loan for the next 10 years.  At the time of claim, the policy will pay the balance of the loan. If the dentist becomes disabled in the first year, the policy would pay the remainder of the 10 years. If the dentist becomes disabled in the 5th year, the policy would pay the remaining 5 years of the loan.

The advantage of a disability business loan product versus an individual disability product is the business loan product is significantly less expensive. Furthermore, the premium can be deducted as a business expense since the benefits payable are paying down a deductible loan.

For more information about disability insurance to cover business loans, contact the Set for Life Insurance office today.

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Why Do Dentists Need Disability Insurance?

Monday, November 22nd, 2010

Dentists need disability insurance like all other professionals.  Typically, we recommend anyone who would not be able to sustain their financial obligations for a long period of time to protect themselves with an individual disability insurance.

So what makes dentists special when it comes to disability insurance?  First of all, being a dentist is a very physical profession. It requires you to be bent over fixing your patients’ teeth for long periods of time. It also requires a great deal of fine motor skills and dexterity. Therefore, even a seemingly minor injury or illness such as arthritis that may not disable someone who sits at a desk, will most likely prevent a dentist from being able to practice their art of dentistry.

In addition to the increased risk, most dentists are also business owners who carry a great deal of overhead. In addition to covering their take home pay, they need to ensure they can continue to pay their business obligations and keep the practice running if they became too injured or sick to work.

For more information about dentist disability insurance, please contact the Set for Life Insurance office today.

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Disability Insurance Specifically Designed to Cover Business Loans

Saturday, June 26th, 2010

Starting a business can be an arduous process. One of the most important steps is to secure financing. To ensure you can still pay your payments if you become disabled, some banks require a disability insurance policy to secure the loan. There are policies designed specifically for this need.

Take for example Dr. Jane Dentist. She is purchasing a dental practice for $500,000. Her loan terms require her to pay back the loan in $10,000/month increments for 7 years. She could obtain a policy designed specifically for this need. After a waiting period (typically 90 days), it would pay the bank $10,000/month for the duration of the loan. If she became disabled in the first year, it would continue to pay the rest of the loan. If she became disabled in year 6, it would pay the remaining months.

This is a separate policy from business overhead expense insurance that would pay the overhead expenses to keep the practice running.

There are a few companies available to cover business loans. For more information and to request a quote comparison, please contact Set for Life Insurance today!

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