Protecting Your Other Family - Your Business
by Anthony Delvecchio

Most of the articles you find on disability insurance focus on the importance of protecting your greatest asset, your ability to earn an income and what that means to your family. I am a true believer in that as well. However, this article explains the importance of protecting your other “family”, your business. The baby you raised with your sweat, knowledge, time and your hard earned dollars. This is the family that you could lose rather quickly if you were unable to perform the material duties of your everyday job.

If totally disabled, most of us could survive on savings until our personal disability policy benefits became payable. It would be hard, and money would get tight, but at least relief would be on the way shortly. Now picture yourself in the same situation, trying to get by, but now with the added stress of your business bills. These are the bills that keep coming regardless of your health. Who is going to pay the rent, lease, and mortgage payment to keep the doors open? Where is that money coming from? Who is going to pay your employees’ salaries? How about the office supplies, electric bills, and your equipment payments? If you’re a physician who owns a practice, how are you going to pay your premiums for all the insurance you have in force such as your malpractice insurance premiums? Can you afford to pay for a replacement physician to come in and continue treating your patients? My guess is your “second family” is going to be in trouble and it is going to happen faster than you think. Business bills pile up quickly. In most cases your business expenses are going to be a lot higher than your personal expenses.

Having an Overhead Expense policy in force is essential for any business owner. This product protects your second family, your business. It will help to reimburse you for your overhead expense that would continue even after you are disabled. The policy will reimburse you for all your normal business overhead expenses. This policy will help you keep your business running. Keeping your business running until you recover is important, but “if” you don’t recover from an injury or illness, having your business still running allows you to sell it and regain that capital. Last thought, unlike an individual policy for which premiums are paid by the business, the premium for Overhead is tax-deductible. Because the policy reimburses you for expenses you are deducting as business expenses, this type of disability benefit is essentially tax-free as well.

Business expenses come at you fast, and can pile up if you are in a situation where you can no longer work full time. This makes losing your “family” a scary reality. When going over your insurance needs, make sure you think about your other “family” as well - your business. Be sure to speak with your agent about Overhead Expense insurance.

This publication is provided as a courtesy and does not modify the provisions of any policy. It is offered for the purpose of education and information only and is not intended to constitute tax or legal advice. Please consult your personal legal or tax advisor for information on your specific situation.

Policy form 4200 underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA.