Business overhead protection, business loans, and key employees are important concerns for small business owners. In addition, many business owners could benefit from Principal’s complimentary business planning services to help them secure their financial future with an informal business valuation and a buy-sell review.
Business owner clients can get a five percent preferred business owner discount on buy-sell quotes, when they also apply for two other business owner products, including individual disability income or the business owner products below.
BUSINESS OVERHEAD PROTECTION
If small business owners are temporarily unable to work, their business might have significantly less revenue coming in because of their inability to provide the services their clients and customers need. But they would still be responsible for their overhead expenses: rent or mortgage payments, loan payments, insurance premiums and utility bills — not to mention employee salaries.
BOE insurance can help cover these basic expenses for up to two years after a disabling event. So even though the revenue may decrease, the business can stay afloat while the business owner recovers.
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.
When you discuss business owner products with your clients, ask if they would like a free business valuation and buy-sell review.
Want to learn more about Principal’s business planning services?
For more information or the one-page information form to request services, contact Steve Crowe at ext. 222