Often overlooked when discussing the security needs of families, Individual Disability Income Insurance can protect a family from the devastating effects when a breadwinner suddenly is unable to provide for them.
This product is used in small businesses where the owner is primarily responsible for the continued success of the business. He is also responsible for the livelihood of the employees. If the Owner becomes disabled, will the company be able to survive? Will they have enough income to pay the employee’s salaries and the monthly bills? Business Overhead Expense coverage can provide this type of protection.
Partners often have a Buy-Sell agreement in place to provide for the orderly transfer of ownership should one of the partners die or become disabled. These agreements are very often funded with life insurance, but we have found that few are funded for Disability. Because the chances of a business disruption due to disability are higher than due to death, we need to talk to our clients about funding the agreement with Buy-Sell disability insurance.
What would happen to a business if the person responsible for the success of the business is suddenly disabled and unable to work? The business would be hard pressed to replace that person and return the company to the success it enjoyed before the disability. A Key Person disability policy provides the company the cash it needs to hire a new Key Person, replace lost income, satisfy creditors and put the other employees at ease knowing there is money available to pay their salaries.