What would you do if you could no longer work? Is your income protected? If you are a small business owner, whether you are a sole proprietor, involved in a business partnership with multiple owners, etc., it’s important to think about income protection in the event that you are unable to work.
Ironically, as the owner, you’re one of the most valuable assets to your business…and to your family. Yet, you might be surprised to find out that you are quite possibly one of the least protected people in your company. Disability income protection is incredibly important to the continuation of your families’ and your business’ finances.
Group Plan LTD Coverage May Not Be Enough
Long term disability policies in your group plan may not be the most ideal coverage in terms of income protection for you as a business owner. Primarily, this is due to contract wording that might make it hard for a business owner to satisfy the “definition of disability”. In that event, you could be paying premiums for a policy that you can’t claim.
Additionally, the maximums might not be high enough to properly protect your income should you be unable to work.
Why Should You Consider An Independent Income Protection Strategy?
Independent Long Term Disability contracts can include more flexible definitions that recognize your unique situation as a business owner. You, perhaps, could be eligible to receive partial income from your policy, while still drawing some income from your business and still be able to handle a reduced work load. It’s also important to note that most group benefit plans will allow the business owner (only) to opt-out of the group LTD plan in the even that they purchase their own separate income protection.
How Do I Know I have Adequate Income Protection?
If you’re worried your income isn’t adequately protected, chances are you are under insured. As your finances change or if you are in the market for a disability policy, it’s important to consult a benefits specialist who can conduct a needs analysis for you. This will give your advisor the necessary insights to ensure that you have or are presented with options to make sure that your income is properly protected in the event of the unknown.
Your livelihood and your family’s well-being is dependent on that income so the best place to start is to ask yourself one question: “If I was unable to work, would I have a sufficient and sustainable income?”