Retirement, business loans, and key employees are important concerns for small business owners.
Introduce small business owners to these DI products designed to protect their businesses and retirement savings in the event of a disabling injury or sickness:
DI Retirement Plan Protection
The first thing that stops when you are disabled and struggling to make ends meet is saving money. Retirement plan disability insurance continues contributions to a retirement plan even when there is a total disability. Once claimed, a policy pays benefits to a trust, where the insured can invest the funds. Then at age 65 or 67, the trust proceeds are paid to the insured. Some investments that are commonly part of a policy include pension plans, stock plans, 401(k)s, IRAs and profit sharing.
Retirement plan disability insurance can be added on top of an existing individual disability income policy. There are no issue and participation limits or medicals required with this DI product.
Business Loan Disability Insurance
This is vital insurance coverage for professionals seeking to open their first practices; expand their businesses; or add more locations. Business loan disability insuranc covers loan payments when business owners are unable to work due to disabling illnesses or injuries. As you can imagine, this coverage can keep businesses alive until the owners can return to work.
How big is the risk?
According to the Disability Resource Center, a 35-year-old has a 50 percent chance of becoming disabled for three months or longer before turning 65. And while only 3 percent of mortgage foreclosures are caused by death, 48 percent are caused by disability of some kind.
Keyperson Disability Insurance
When a key employee in a small business is disabled it can have a big impact on the small business owner’s bottom line. If a key employee suffers a disabling illness or injury, the hospital can use the benefits as needed to fill the key man gap. In many cases, these benefits are used to pay for the cost of recruiting and hiring a temporary or permanent replacement.
Opening a discussion with small business owners about these 3 DI products will create opportunities for cross selling, too. Business loan protection can accompany a business overhead expense DI policy. Retirement protection DI can lead to a discussion about succession planning with DI.
Want to learn more about DI for small business owners?