Disability Buy Out
Sharing ownership in a business has its own unique challenges, not the least of which is providing equity funding if one of the owners becomes disabled.
The question is: “If a business partner became too sick or hurt to work and could not return to the business, how critical would it be to the continuation of the business to have a plan in place and the means available to buy out the disabled partner?
For most businesses it would be very difficult to survive the effects of an owner becoming disabled.
Guaranteed Standard Issue
Becoming disabled and not being able to work is one of the greatest financial risks American workers face. Over recent years serious disabilities caused by accidents and illnesses have increased dramatically and this trend is going to continue as life extending technologies grow, are populations age and the general health of the American work declines due to such things such things as obesity, diabetes, hyper tension and heart disease.
According to the council for disability awareness over one hundred million workers did not private disability income insurance.
INADEQUACIES OF GROUP LONG-TERM DISABILITY
Many employers provide valuable group long term disability coverage to their employees and the monthly benefit this coverage provides forms a great foundation upon which to build your disability income insurance program. However, that group coverage on its own may not provide adequate coverage in the event in which you became sick or injured.
By design group long term disability plans typically protect up to 60% of your base salary and usually have a monthly payment cap of 5000 to 10000 dollars. Additionally if your group long term disability is paid by your employer, the benefits are taxable.
Individual Disability Income
What is your most valuable asset? Most people would say their home. Now well it may be true that your biggest expenditure is your home. The truth is your most valuable asset is your ability to work and to earn an income. We insure our home and we insure our vehicles, why would we not insure our most valuable asset?
What would happen if you became too sick or hurt to work?
What would happen to your income?
How would you pay your bills?
What would happen to your long term financial plan if you suffered a disabling event?
Business Overhead Expense
Business owners work very hard to attract and keep clients. Their door seems to always be open and the thought of telling clients to do business with someone probably never crosses their mind. However, it could come to that if a business owner became too sick or hurt to work.
Can the business survive without the owner generating income for a month, six months or even more than a year? Who would pay the office expenses like rent, salaries, utilities and loan payments?
Would the business lose key employees?
SALES LESSONS FROM THE MASTERS – KEN SMITH
Join us for The Plus Group Learning Webinar and find out about sales techniques from some of the masters.Ken Smith is an experienced insurance sales and marketing executive who knows firsthand the challenges of the sales profession. He speaks hundreds of times a year in front of agent groups, and therefore he also understands how so many of today’s agents are missing out on the accumulated wisdom of some the best sales minds in the business.
For these reasons, Ken has written Sales Lessons from the Masters.
The “masters” who provide the lessons here are Frank Bettger, W. Clement Stone, Ben Feldman, and Joe Gandolfo. By reviewing their lives and the challenges they overcame, along with the sales principles they used to guide their practices, Ken passes along their sales wisdom to a new generation of agents.
EXPRESS STANDARD ISSUE SOLUTION (ESI) – BRYAN ORR
With participation requirements among the lowest in the industry, ESI can be used as a stand-alone program, but there are more ways to put it to work for you. ESI is flexible enough to be a reflex option with MOO’s existing Guaranteed Standard Issue (GSI) program. If you are working on a case and you are unsure of whether the GSI requirements can be met, ESI may be the answer.
Offering the ESI program to small businesses requires less participation, less underwriting and more flexibility.