Due to the perceived unaffordable costs, disability insurance may be a hard sell to a small business owner. However, a business owner might be more easily convinced when confronted with the demands (and determination) of employees, as noted in an article published by Insurance Business America. Meanwhile, a recent report from the Consumer Federation of America (CFA) shows that “while only one in three private sector employees offer long-term disability coverage, one in four Americans will need disability insurance sometime during their working lives.”
“The CFA believes common Social Security disability insurance won’t adequately address this hardship, paying out just $1,100 a month for eligible disabilities. Employees agree. Nine out of 10 employees told the CFA they wanted their workplace to offer more generous coverage through long-term disability insurance. More than half said they would pay for the entire cost of coverage themselves.
However, most employers say they don’t know much about disability insurance. This is particularly true of employers with a small staff size. According to the CFA study, 62% of organizations with fewer than 100 workers say they don’t know much or anything at all about disability insurance.”
Financial planners and insurance brokers can provide the education and disability income policies employees and small business owners need. Source Brokerage Inc. can help financial planners and insurance brokers design disability income plans for the small business owner and his employees. It can be a win-win for the employee and the business owner. The study also revealed that being granted disability benefits can make almost 60% of employees “feel more favorably” toward their boss or employer, which becomes a great selling point for small business disability insurance brokers as they make presentation to their small business owner clients.
Protecting the small business owner’s income, their employees, and their business can be considered a significant part of a business contingency plan. For instance, business overhead disability insurance can cover business utility bills, payroll, and other overhead costs if the owner is sidelined by disability. Or if a key employee becomes disabled, key person disability insurance will pay a lump sum to the company that can be used for whatever purpose the company deems important. Consequently, despite the absence of the owner or a key employee, the business can keep running smoothly.
Whether insurance brokers and financial planners are seeking disability insurance for an attorney, a doctor, an executive, or other rank and file employees, there are a variety of disability products available from reputable carriers. Partnering with Source Brokerage, Inc., will help brokers design the best disability income plans tailored to the specific needs of their clients.
(Source: Employee demands for disability coverage going unheard, Insurance Business America, May 22, 2014)