There are several factors to consider as a broker when it comes to pitching disability insurance to a client. You want to consider their age, their economic standing, and their career. Disability insurance helps to protect an individual from significant financial instability if they were to become too sick or injured to work for an extended period of time.
As a broker, you meet clients in many different types of careers. Small business owners can especially benefit from disability insurance. Owning a small business presents several unique challenges that should be considered by the owner. Not only does this client have to worry about their own expenses, but they also have to worry about their business expenses. Suffering a serious sickness or injury can impact a person’s personal and professional life. When discussing disability insurance with a small business owner, it is beneficial to highlight their unique challenges and disability products that can offset these challenges.
Personal Financial Stability
Business owners need to consider their own financial stability. Owning and operating a business is their primary source of income. Many business owners are actively involved in the operations of their business. This includes actual physical work, inventory, hiring, firing, and ensuring the business is operating smoothly. They rely on income generated from their small business to create a secure financial future. The sudden inability to work could affect both the business owner’s personal and professional life. A business owner may need to add more staff to take over the work they were doing themselves. In addition to individual disability income, they may also need business overhead expense to continue to pay the expenses of the business.
An unexpected disabling illness or injury can make it difficult for a business owner to pay employees and continue to operate his business. It can be detrimental for clients who are operating a small business. Depending on the size of the business, it could affect the overall business operations, reducing profits. On the other hand, business overhead expense will pay the expenses of the business to keep the business running for a period of time while the owner is unable to work. In addition to paying operational expenses, it also provides the funds to pay the salary to hire someone to run the business while the businss owner is unable to work.
Added Financial Risks
A business owner has more financial risks than individuals who work for someone else. A business owner has to worry about their own finances, such as home mortgages, car payments, bills, and future investments, but they also have to worry about all their business expenses, such as paying their building’s rent or mortgage, inventory, and paying employees.
The additional financial risk provides a clear reason why disability insurance makes sense for business owners. Disability insurance protects the business owner’s income and their business. This can help offset the buildup of costs that can be associated with a long-term absence from work.
Source Brokerage, Inc.
Disability insurance is beneficial for all individuals in the workforce, as it provides vital income protection for those who simply need to work. For small business owners, the loss of the ability to work can have even more detrimental repercussions because it not only affects their personal finances but also their businesses. Explaining the need for personal and business overhead disability income protection to small business owners is a win-win for the client and brokers. Business owners can protect their lifestyle and the business they worked so hard to build, and the brokers increase their disability income sales and commissions.
Contact Source Brokerage, Inc. to learn more about how you can tailor your disability insurance discussions to business owners.