Safeguarding Your Business from Disability and Death


Congratulations, you have built yourself a successful business!  You worked hard to reach your goals, but have you considered what would happen if you, a partner, or a key employee became disabled or died?

Would your business survive?  Could you meet the business expenses of payroll, loan payments, etc?  Would you be able to sustain your family’s lifestyle?

Fortunately, these scenarios are not as scare if you plan ahead.  Insurance delivers a way to protect what you have built.  Key-person insurance provides funding which may be used to meet your daily business expenses such as: payroll, business loans, etc.  Buy-sell agreements funded with life insurance provide funds to purchase a deceased owner’s share in the business.  Disability insurance provides income protection for your family should disaster strike.

Do you have highly-skilled employees who would be costly to replace?  Key-person insurance may be the answer.  Here’s how it works.  Your company purchases life or disability insurance for the key person and is the owner and beneficiary of the insurance policy.  If death or disability occurs, a claim is filed and tax-free dollars are used to: find and train a replacement, replace revenue during a transition, and finance business transactions.  Funds may be used to buy out a key employee’s shares or interest in a company.  In addition, a policy may be transferred to the key employee leaving the practice at retirement.

Key-person insurance and buy-sell agreements can protect your business from a loss.  In a similar way, disability insurance safeguards your employees from a loss.  Did you know over 36 million Americans are classified as disabled? Disabilities impact one-fifth of Americans.  In fact, three out of ten workers entering the workforce will become disabled before retiring and one in five workers will be disabled for at least one year within their career.  Group and individual disability insurance products provide peace of mind that your income stream will continue should you become disabled.

Group disability insurance provides income protection for 40 to 60 percent of your base salary.  In addition, supplemental disability insurance may be layered over group policies to provide increased income protection for business owners, highly skilled professionals, etc.  Disability insurance may be offered at no additional cost to your company if the employees pays the entire premium, or an employer can offer disability insurance as an additional workplace benefit paying some or all of the premiums.

Did you know that 70 percent of the workforce could not pay their regular living expenses if they were injured for more than six months?  Long term disability (LTD) insurance in an inexpensive benefit for employers to share in the cost to employees and provides income protection from three to six months after the disability occurs until the person reaches the Social Security normal retirement age.  These policies may be customized to provide special protection a business with a specialty focus such as a doctor or surgeon.

Short term disability (STD) insurance provides protection during the first few weeks or months of an illness or injury.  Employers can offer employees the opportunity to purchase this important protection at lower group rates, often on a voluntary basis, at no additional cost to the employer.

Death and disability pose many tough questions to a business owner.  AUI has been helping business owners protect themselves, their employees, and their businesses for over forty years.  We can help you find answers to these questions by designing a business protection plan to safeguard what is important to you and your employees.  Contact us today at 330-645-6338 or by clicking here to schedule an assessment meeting.  Our local agency has agents with over 200 years of combined insurance experience.

We do more than cover small businesses and individuals with the right insurance policies and benefit plans – what motivates our team is helping you save more so you can invest more in your team, family, and goals.

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