Home | Individual Disability Income | Business Overhead Expense | Quote Request

Protecting Your Business

As a successful business owner you know that if you become sick or injured and can't work, you may very well be forced to close down your business. The resulting strain on both your personal and business finances could be devastating. After all, your income is divided between two budgets.

When sickness or injury strikes, a personal disability income protection plan can help provide you and your family with the necessities of day to day living. But your overhead expenses would continue to mount up. How could you afford to keep your business running?

Business overhead coverage would reimburse you for rent on space you occupy as a business premise, salaries of employees, premiums for business insurance, property taxes, scheduled depreciation for furniture and equipment, plus much more

Look At The Numbers

If you are a business owner, would your disability disable your business? Add up your monthly expenses and deduct the benefits you would receive from other sources. The bottom line is that your monthly income would need to cover your net business expenses.

Business Financial Needs Analysis
Utilities
(heat, water, electric, telephone)		 $
Employees' wages, including payroll taxes $
Property and liability insurance $
Rent, scheduled mortgage payments,
or if greater, depreciation for tax purposes)		 $
Taxes on owned business property used in your daily business operation $
Lease payments, scheduled payments, or if greater,
scheduled depreciation for equipment		 $
Accounting, billing, and collection service fees $
Interest payments on business debts $
Laundry and maintenance services $
Other normal and fixed charges acceptable as a tax-deductible
business overhead expense by the Internal Revenue Service		 $
Total Monthly Business Expenses $_____________
Disability Overhead Expense Coverage in Force $
Net Monthly Business Expenses $_____________

Where Would You Turn For Help?

Now that you've determined how much income you would need if you should become disabled, the question is: Where would the money come from?

Resources Drawbacks and limitations
Social Security Approximately 50% of all Social Security disability claims are denied.
Savings Account How far would your savings go? And are you willing to see them disappear?
Employee group disability Most plans cover only base pay. Benefits are taxable.
Individual Retirement Account (IRA) A penalty is imposed for early withdrawal from an IRA. If you should withdraw these savings, what would happen to your retirement?
Worker's Compensation Pays only a limited amount over a relatively short period of time.
Loan from a bank or other Who will lend funds to you, if you can't work? How will you pay it back if you remain disabled?
Friends and relatives May be willing to help, but their resources are limited.
Spouse's income Can your spouse continue to work while caring for you and managing the household?

A disability can be partial or total, temporary or permanent. Fortunately, most disabilities are temporary. But, even if you were disabled for six months to two years, consider how the loss of income would affect your financial security and retirement plans.

You work to provide a continuous income, whether you're the sole breadwinner or one who shares this responsibility. If you lost your earning power as the result of a disabling illness or injury, a disability insurance plan would ensure continuity of income when you need it most. For you and your family, it could mean the difference between financial distress and financial stability.

A Plan That Goes To Work When You Can't

You can't eliminate the risk of a disability. But you can alleviate the concern. A disability insurance plan provides you and your family with a measure of protection against an illness or accident that could jeopardize your income. It's a plan that can make all the difference- unless you wait until it's too late.



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Home | Individual Disability Income | Business Overhead Expense | Quote Request