It may be difficult to think about what would happen to your business should you or your partner experience something unsavory, but it could happen. Your business depends on you, and your health and an injury or illness could prevent you from earning a paycheck. Protecting your company against any kind of income loss as a result of an accident or sickness can provide you with peace of mind, that’s why disability insurance is a smart choice.
What is Disability Insurance?
Disability insurance can replace a portion of your salary should you become disabled due to an illness or accident. It’s also an excellent safeguard for business owners and partners to help keep their company up and running during this difficult time. Depending on the coverage, you could expect to receive approximately fifty to eighty percent of your gross income. While it’s not the full amount, it’s definitely better than nothing, and it gives an individual an incentive to get back to work. However, whether you can go back to work or not is dependent on the problem or situation. Unfortunately, insurance companies may not always play fair, and you may be denied the benefit of receiving disability rewards. If you had a claim of disability denied, you can seek legal representation to appeal your case.
The Benefits of Disability Insurance
There are numerous benefits to securing your business through disability insurance that includes protecting your assets in case of an unexpected emergency. It can also provide income while you’re unable to work and cover overhead to pay for your lease, rent, taxes, salaries and any expenses related to the operation of the business. Key personnel disability insurance pays money to the business in case the primary business person is unable to work due to an illness or injury. It can also be used to hire a temporary replacement or outsource the individual’s job duties until they are able to work. In the event of death or a permanent injury, buyout insurance coverage will allow the remaining partner to purchase their portion of the business.
What to Look for in a Policy?
In order to keep your premiums to a minimum and to avoid the risk of not being insurable, you want to buy your policy at an early age. It also helps if you purchase something that caters to your specific business needs. Some insurance companies will only take care of certain areas of your employment, while other policies ensure that you have the best possible coverage, so you need to do your research beforehand carefully. Disability insurance can also extend to your employees and coverage can protect them, any personal debt, and the costs necessary to run your business. Guaranteed insurability saves you time since you won’t have to re-qualify for future coverage. You can also lock in your rate with a non-cancellation policy, to keep your premiums and benefits the same.
Disability insurance is a safeguard for business owners who want to protect their well-being along with the company that they’ve worked so hard to establish. It also has a variety of terms and uses, so you need to do some investigative work to ensure that you’re getting the best policy for your company’s specific needs.
Author Anthony Joseph likes to write about different legal and small business topics for people who may be interested. It can be a terrible thing to have your claim of disability denied. The law firm of Marc Whitehead & Associates is fully dedicated to get justice for individuals who have been wrongly denied for their long term disability benefits.