The value of individual disability income insurance for businessAs a business owner, you’re the heart of your business. You wear many hats, pouring everything into making sure your customers are satisfied, bills are paid, phones answered and employees paid. You’ve built something you and your employees are proud of. Show
Our individual disability products—to help provide peace of mind and security to your business and extend vital coverage to you and your employees.  Two solutions to help you and your employeesBusiness Overhead Expense Business Overhead Expense disability income insurance provides benefits to help cover your fixed monthly business expenses if you can’t work because of an injury or illness. Expenses like:
Your business enterprise depends on you. That’s why it’s important to plan now. Business Overhead Expense Insurance is an essential part of financial protection for your business. Benefits built for you and your employees Maximum Benefit Amount The monthly benefit amount for Business Overhead Expense disability coverage ranges from $500 to $20,000. Elimination Period Your policy will have a waiting period before policy benefits begin. Choices include: 30, 60, 90, 180 or 365 days. Benefit Period This is the duration of the amount of time you receive benefits. The available benefit periods are 12 and 18 months. Disability Income Choice at Work Disability Income Choice at Work offers income protection that will pay your employees a monthly income during their recovery from a disabling illness or injury…income they can count on to help pay the bills and protect what’s important to them. The Disability Income Choice at Work Portfolio includes:
In business, one of your most important assets for success is the retention of good employees. To help you hire and keep the best, the quality of your company benefits program must help convey that you value your employees and care about their future. Benefits built for you and your employees Covering the three products of Accident Only Short-Term Disability, Short-Term Disability and Long-Term Disability the DI Choice at Work Portfolio has numerous coverage and cost options. Flexibility Our policies allow you to tailor a benefit solution to best fit your employee group. Cost Control Policies can be offered as employer-paid or employee-paid, allowing you to control costs or even add to your benefits program at little or no cost. Tax Advantages* Employer-paid premiums may be tax-deductible for your business. On employee-paid policies, disability income benefits are paid tax-free to employees. We are here for youWhen offering voluntary disability benefits or buy-up options to your employees, access to information is important. Determining how much disability insurance your employees need and can afford requires them to examine their income, assets, expenses and liabilities, and then to figure how long they could keep everything going if they were unable to work. Carriers will typically offer benefit communications that provide this education, but this information is readily available through online sources as well. Here are seven things to consider before buying disability insurance. You probably have many different types of insurance for your business, including health, liability, vehicle, and property, to name a few. But many small business owners neglect what may be one of the most important types of insurance coverage – disability. According to the U.S. Social Security Administration, 56 million Americans live with disabilities and 38 million live with severe disabilities. And for 20 year olds that are insured for disability, more than 1-in-4 of them will become disabled before reaching retirement age.
When you make your living as a freelancer, have a professional practice, or own your own business, everything depends on you – and it can be hard to take off even one day from work. But what if a serious illness or injury prevented you from working and you had no income for months? How would your business or practice survive? What would you live on? Generally speaking, there are two types of disability insurance for people who work. Short term disability insurance (STD) provides temporary income protection for employees, typically for up to six months of disability. Long term-disability insurance (LTD) provides protection that
lasts for years – and even through retirement – depending on the terms of the specific policy. However, disability insurance for people who own their own business works a little differently – and the process of getting coverage can be more involved: 1. Individual disability income
insurance – an insurance policy that protects your personal income if you’re unable to work due to injury or illness. Your policy is an individual contract with an insurance company that defines the following: It also makes sense to get a residual or partial benefit rider: With this option, if you are able to do some work, you can receive a portion of your monthly benefit as you recover and work to rebuild your business. 2. Business overhead expense disability
insurance – If you become disabled, your business’ income will drop – even as business expenses go on, including rent, utilities, taxes, and employee salaries. Major carriers such as Guardian offer overhead expense coverage that can reimburse up to 100% of covered expenses to ease your cash flow worries. Guardian also offers more specialized protection that provides business loan coverage. This feature protects your ability to pay business loans and other
contractual financial obligations, such as business purchase or start-up loans, equipment purchases or lease agreements, and business expansion loans. This coverage can fund up to 100% of regular payments and allows you to tailor the length of the policy to the duration of your loan or loans, so you only pay for the coverage required. To answer that question, start by
estimating your current monthly living expenses, including: Next, assess your monthly business expenses: While you can usually only get coverage to replace up to 80% of your personal income, it’s possible to get coverage for up to 100% of your fixed monthly business expenses. If you have substantial savings or other liquid assets, you can take those into account and adjust your needs accordingly. You may also decide later in the process that certain expenses may not be necessary; however, you need to have a solid estimate of your personal and business expenses as you start shopping for a
policy. Your lifestyle and needs are uniquely your own – and your business is a unique entity with its own customer base, processes, assets, and liabilities. Your policy needs to be tailored with a specific benefit amount and length that reflects those requirements, along with other provisions that address additional concerns, for example, by getting a
Cost-of-Living Adjustment rider to account for inflation*. A policy with a smaller benefit amount, longer waiting period, and shorter benefit period will cost less than a policy with a larger benefit, shorter waiting period, and benefit payments stretching into retirement. Factors such as age, gender, lifestyle, and occupation will also affect your premium costs. One rule of thumb: expect to pay between 1% to 3% of your annual income for a policy that
offers the coverage you need. The most comprehensive type of disability insurance policy is non-cancellable and guaranteed renewable. That means that as long as you pay your premiums, the insurance company cannot raise your rates, change your monthly benefits or revise policy provisions (such as a Cost-of-Living Adjustment rider) – unless you ask to revise your policy. Some policies are only guaranteed renewable, with such a policy, the insurer can raise premiums, lower benefits, or change policy provisions – but only if they get approval to do so for the entire rate class from your state’s insurance department. There is also a conditionally renewable disability policy. With these plans, the insurer can change rates, benefits, and provisions at will, so the policy you get today could cost far more – and cover far less – a few years down the road. Talk to a professional to explore the right solutionsDisability coverage is one of the most important tools you can have to protect your business and livelihood – but that protection is only as good as the policy contract you sign. Start by talking with your financial professional or a trusted insurance broker. They should be able to suggest possibilities beyond the basic items covered in this article. For example, if you have a few employees, you may be able to have your personal protection needs met with lower-cost group rate disability insurance for both short-term and long-term needs. If you don’t have a financial professional or broker, a Guardian financial representative can help craft the right solutions and provide a disability insurance quote. You should be prepared to share as much as you can about your personal and business financial situation and goals so that he or she can tailor your policy and other financial plans to meet your overall protection needs better. Frequently asked questions about disability insurance for self-employed individualsCan I get Social Security Disability if I am self-employed?Social Security Disability Insurance (or SSDI) is a part of your Social Security benefits, which are paid for by your self-employment taxes. However, it’s usually much harder to qualify for than an insurance policy purchased individually or through a group. Most SSDI applicants are rejected – and the benefits are typically lower than with a private disability policy.2 Also, SSDI provides no financial protection for your business overhead expenses – rent, utilities, etc. For most self-employed businesspeople, SSDI is not an adequate source of protection. Can I buy disability insurance on my own?Yes. Long term disability insurance policies can be purchased by individuals. A Guardian financial representative can help craft the right solution for you and your business and provide a disability insurance quote. Are long-term disability insurance benefits taxable?Since LTD premiums are usually paid for with post-tax income by the individual policyholder, the monthly benefit received is typically free of taxes. You should consult with your financial representative about the specifics for your business. Get a long term disability insurance quote Go now Who needs disability insurance the most?4 Types of People Who Need Disability Insurance. The Sole Provider of the Family. If you work outside the home earning a living for your family, disability insurance can go a long way to protect your earning potential. ... . People in Physically Demanding Roles. ... . Parents. ... . Those With Recurring Injuries.. Can independent contractors get disability in California?Any self-employed person, independent contractor, or general partner who meets the requirements can apply for Disability Insurance Elective Coverage (DIEC).
What is WIA insurance in the Netherlands?Benefit under the Work and Income (Capacity for Work) Act (WIA) provides you with income if you become unable to work (in part or in full) due to sickness or disability. You can claim this benefit if, after being ill for two years, you are still unable to go back to work.
What is WGA gap insurance Netherlands?The WGA-Gap insurance covers the shortfall in income if you remain disabled between 35 – 80% after two years of illness and using less than 50% of your residual capacity. You will receive a benefit of up to 70% of your former salary.
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