There is going to be a decent amount of information on this page because small businesses have multiple needs when it comes to disability insurance for small business owners. There is one thing you need to understand because once you do you will not make a bad decision.
Odds are good that you are very familiar with the price of success you paid to get to where you are today. If you are the rain-maker for your business, your business relies on your ability to go to work every day. Your family relies on your ability to go to work every day. While many companies offer disability insurance to business owners, there is one specific aspect of a policy that is vital... the recovery benefit.
If you had been disabled for a year, and then one day magically recovered, how long would it take for your business to get back to where it was before you were disabled? It probably took a really long time for you to build the business the first time, it may take equally as long for you to do it the second time.
The "Loss of Time or Duties" Trap
The Provider Choice disability insurance policy does not have a "Loss of Time or Duties" requirement to pay benefits in their Enhanced Partial Disability Benefit Rider. As long as you suffer a qualifying sickness or injury that is solely responsible for a 15% or more loss of income a partial benefit may be paid. This means they could pay partial benefits until you financially recover up to the policies benefit period. Many of our competitors require a loss of time or duties to pay benefits, so as soon as you recover from a sickness or injury with the competition your claim could be over.
You paid the price for success one time already, and you know how long it took to get to where you are now, why would you ever buy disability insurance from another company who could cut off your benefits as soon as you physically recovered, when it may be years until you financially recover?
The Risks of a Disability are Real
Hopefully, by now you no longer believe yourself to be invincible. Disability insurance statistics show the risks truly are real when 1 in 4 will become disabled during their working years. Many people have different visions that come into our heads when we think about what could disable you, but the reality is 90% of claims are illness related with only 10% coming from an accident. If somebody does have a long-term claim, the average duration of a claim is 2.5 years1!
The Multiple Needs of a Small Business Owner
You now understand the importance of having a personal policy without a "Time or Duties" requirement because of the message at the top of this page. That is vital for your personal income protection via a policy from Guardian*. Here is a list of all of the other areas that can be addressed to help protect your business in the event of an unexpected illness or accident for you, or a key employee.
1Commissioner’s Individual Disability Table A * Individual disability income products underwritten and issued by Berkshire Life Insurance Company of America (BLICOA), Pittsfield, MA. BLICOA is a wholly owned stock subsidiary of The Guardian Life Insurance Company of America (Guardian), New York, NY. Product provisions and availability may vary by state.