Every business is different, and there is no cookie cutter solution to protect a business owner’s income. When looking at any type of insurance, cost is certainly a consideration, but the real question is “Can you afford not to have coverage?” If you suffered a long-term injury would your business be able to maintain its success and provide an income stream for you and your family? Would your business survive without you? Here are some issues for you to consider:
Blue-collar jobs that involve manual labor have greater risks than if you work at a desk. In addition to a higher risk of injury, there is a greater risk of not being able to return to the same type of work if injured. A construction worker, who hurts their back in an accident, may not be able to do the same type of work reducing their future earning ability. However, a person who works at a desk could probably continue doing the same type of work even if with some physical limitations. If an injury could prevent you from doing the same job, disability insurance would be well worth the price if you were to become disabled.
do you have enough saved
If you have at least three months of salary accessible in savings, you should be able to survive an emergency situation that lasts a few months. However, if you don’t have savings, even a short-term injury could cause a serious financial crisis with longer-term impacts for you and your family. Analyzing how long you could manage in a crisis helps to determine your needs.
don’t rely on Social Security
If you think Social Security provides a safety net for disability, you might want to rethink that position. The process of being qualified for Social Security disability benefits can be lengthy, and even if you are clearly disabled, it’s possible that Social Security could deny benefits. If you were able to get approved, you’d most likely find that the payout is extremely low and not enough to maintain your lifestyle.
The cost of disability insurance varies depending on the type of work you do and the type of policy. Premiums can be higher if your job has greater risk of injury, and in some cases, it may make obtaining coverage difficult; however, you shouldn’t assume that coverage isn’t affordable. Again, think about the potential cost to you and your loved ones if something happens and you don’t have coverage.
While short-term disability isn't available on an individual basis, companies can generally purchase a group policy to cover all employees. Long-term disability is available for individuals. Let our Financial Insurance Team assist you in reviewing your needs and providing a quote so that you can make an informed decision.