While disability insurance is covered by less than half of employers, it is a vital benefit for all employees but especially important for key employees & business owners of a business. Business owners, partners, managers, doctors, realtors, attorneys, truck drivers, and other jobs that may severely be impacted by a disability; how will your business continue if your key employees or you as the business owner are no longer able to work? There are a variety of ways to structure disability insurance to best meet the needs of your business and your staff. Some lenders may even require disability insurance before offering your business a loan.

Short-term vs long-term disability

  • Short-term disability is more affordable compared to long-term disability although the benefits usually only last between 9 weeks to 12 months.
  • Long-term disability is slightly more expensive compared to short-term disability yet cover you for different lengths of time such as 2 years, 5 years, 10 years, up to age 65, up to age 67, or even up to age 70.

Business Overhead Disability Insurance

  • If you are the business owner, business overhead disability insurance is an option to pay your business in case you as the owner are unable to work due to disability. This type of benefit can be used to pay salaries, utility bills, rent and other business expenes.
  • This type of insurnace solves 2 important needs. 1) It allows the business to continue operating until the owner is able to return to work & 2) If the owner is interested in selling his or her business, they have more of an opportunity to sell at fair market value instead of bleeding the company financially due.

Disability Buy-Out Insurance

  • Disability Buy-Out insurance will buy out a totally disabled business owner. This type of policy can minimize tax liabilty while maximizing the financial return for the company.

Key Person Disability Insurance

  • Key person disability insurance is paid for and owned by the employer and protects the business in the case that key staff are unable to work due to disability which may negatively impact the operations of the business.

There are a variety of types of disability insurance that will address different risks of a business. There are insurance carriers that offer guaranteed-issue (no medical underwriting) while there are also specialty carriers for higher incomes and higher risk jobs. To get a quote for your business, it is important to first assess the risks to your business. At Solid Health Insurance, we strive to help find our clients the right health, dental, vision, life, and disability insurance that best fits their medical needs and budget. Please contact us at 310-909-6135 or email us at info@solidhealthinsurance.com for us to better assist you.