Disability and Death: The Double D’s You Must Protect

Well, the election year is in full swing, and what does that mean for your business? I’ll tell you what- it means that an election can cause the Big R again (don’t worry, I won’t say it), and ultimately, this will affect your business as a whole.

Now, what if everything stays peachy, the heavens continue to fill your cup with wealth and you could care less about the Big R because it won’t affect you (you get an “A” for effort)? Well, you might just continue to run the Golden Agency, but I’m here to shoot down your dreams a bit.

One day we are all going to die. Blunt, yes. I’m sorry to be the one to tell you this, but you are, I am, we all are. This is a huge, inevitable “D” that we are all facing one day.

What are your plans for your business when this happens? Who is going to take over? You might as well give up now if you aren’t protected against this Big “D,” meaning “DEATH,” because if you aren’t covered you are already a huge step behind.

Protecting Death is simple- with Life Insurance. There are many things you need to do here, one of which is purchasing a business-owned Life Insurance policy, where the business owns and pays for it. Then, if you have partners, you’ll need a Buy-Sell Agreement (because you can’t trust anybody these days, right?). Key Employee Life Insurance policies should also be purchased for employees that “make a difference,” where, without them, the business would be impacted.

After the business Life Insurance is in place, let’s think a little about your family. By now, I am thoroughly impressed you got to Golden Agency status without all this coverage, but it’s never too late (hopefully you are in decent health, as there is underwriting involved, which is why you should think of this when you are in the start-up phase). A personal Life Insurance policy will help your family not only pay for your death and have the funeral of a lifetime, but it will allow them to keep the lifestyle they are accustomed to (college for the kids, Italian summer getaways).

Now, perhaps you’re young, in great health and will live until you’re 120 because everyone in your family does. Well, for starters, congratulations, but… Yes, there’s always a “but.” Let’s say one day you are in a terrible accident (I hope you don’t burn bridges) and you suffer a severe disability and you are permanently or semi-permanently non-able to perform your duties at your successful Golden Agency. “Fine,” you say, “I’ll have my assistant Starr handle things while I am out (first of all, we should probably talk about your sense of judgment in hiring).”

No, ne, ingen, non, nein, nej, nu, dim. You get the picture.

Why is your business a success? Have you thought about this? Maybe you are one of the handful of business owners who just sits around doing nothing and people throw their money at you because you are extra special for some reason, or, maybe, like the rest of us, you put in blood, sweat and tears into this dream of yours, and have finally reaped some reward for it (kudos for not quitting). How on Earth would your work not be valuable enough to protect what you’ve created?

If this is the case, then here comes the other “D,” which is “Disability.” This is the other critical thing to protect as a business owner (even employees should have personal policies, or at the very least, a Disability policy in their Employee Benefits package that you offer them, because you VALUE and APPRECIATE them).

Disability Income Protection is meant to provide you a benefit when you cannot work due to a disability (car accident, critical illness, etc.). There are two policies you need as a business owner: Personal Income Protection Disability and Business Overhead Expense Disability Insurance.

Personal Income Protection Disability provides you with a monthly benefit that is a percentage of your personal salary, to use as income while you are out of work. Don’t even start to tell me how rich you are and that you have plenty of money saved up. That makes me laugh so hard I can’t stand it. Believe me, when you are out of that kind of money each month and you are digging into your personal wallet to pay excess medical costs (deductibles, coinsurance, etc.) that wealth can be depleted in a heartbeat. TRUST ME.

Then there’s Business Overhead Expense Disability Insurance, which is designed to help your business stay afloat while you aren’t working. Your business has overhead expenses, such as payroll, rent, utilities, insurance (I hope this category isn’t lacking), etc. Wouldn’t it be nice if some or all of this could be paid for you while you are disabled and trying to keep the business running through Starr’s stellar entrepreneurial skills? Yes, it would be a huge help, I assure you.

Isn’t the reason you work so hard because you want to enjoy life, and then leave a legacy? In order to this, you must protect the Double D’s, or your legacy won’t be anything but a memory.

Shelly Alvarez Insurance assists business owners and start-ups with their insurance portfolios. Please contact us today for more information.