Business owners face an additional set of problems should they – or a key employee – become disabled. If the owner is disabled, so is the business. Think about it – if an illness or injury prevented you from running your business:
- How long could you continue to take income from the business?
- How long could you continue to meet ongoing expenses like rent, utilities, and employee salaries?
- When would your customers begin leaving?
- Could you be replaced?
- How long would your business be able to stay in business?
As in a family, owners and key employees are economically dependent on each other. If a key employee became disabled:
- Would you feel obligated to continue his or her pay?
- For how long could you continue payments?
- Would you have a funding vehicle to make this possible?
If you own a business, there are several ways that long term disability insurance can protect you. First, you can purchase an individual policy to protect your own income. For key employees, you can also add individual disability insurance to your executive benefits package. You should also consider business overhead insurance to ensure that ongoing overhead expenses – like employees’ salaries and rent – are covered.
What if you are unable to return to work? Certain disability policies can also cover the cost of purchasing the business interest of a disabled partner. And there are other programs designed to help protect retirement contributions. To learn more, talk to an Alum LTD advisor today.
Alum LTD is a program name created by the Program Administrator, and not the Guardian Life Insurance Company or its subsidiaries. Individual disability income products are underwritten and issued by Berkshire Life Insurance Company of America (BLICOA), Pittsfield, MA. BLICOA is a wholly owned stock subsidiary of and administrator for The Guardian Life Insurance Company of America (Guardian), New York, NY or provided by Guardian. Product provisions and availability may vary by state. Optional riders are available for an additional premium.
2018-59965 Exp. 05/2020