Guardian Disability Insurance Brokerage

Disability Insurance for Women Business Owners

by Thomas Lloyd

The U.S. Census Bureau released their latest data for small business owner growth and results indicated an interesting trend - women owned businesses are increasing. Nearly 30 percent of the 27.1 million small businesses in the U.S. are owned by women. Between 2002 and 2007 only 18% of new businesses formed were owned primarily by males. All small business owners need to secure their own portfolio of benefits for both retirement, health and business security. One of those key components is disability insurance protection. Income protection for small business owners is critical for the long term security of the owner and the company when impacted by either an injury or illness that prevents that person from working. Guardian has a program now through NAWBO (National Association of Women Business Owners) which can provide all members with a discount on their individual disability insurance.

Disability Insurance premiums are determined by a variety of factors - age, sex, occupation, benefit period, elimination period, etc. Generally, women have higher premiums than men for disability insurance - mainly because they are more likely to file a claim. Consequently, women should secure coverage at a young age to ensure a lower premium is locked in for the term of the policy. The discount available through NAWBO membership helps to reduce the higher female rates for a personally owned disability insurance policy.

Women have nearly a 24% chance of suffering a disability during their working career. Compare that with less than a 10% chance of an unexpected death before the age of 65, and you can make the argument that there is a greater likelihood of needing disability insurance over life insurance.

As more women continue to start their own businesses, more focus should be placed on the importance of disability insurance as well as obtaining it while healthy. The consequences of waiting certainly are sometimes the inability to secure coverage, or the loss of a business. Take the time to review this coverage with a disability insurance specialist that can explain the differences in various contracts and select the right form of plan for you and your business. Purchasing a plan through Guardian allows one to secure one of the most comprehensive policies on the market today, and with the NAWBO discount a female business owner can do so at a very competitive rate.