What Are Your Primary Concerns?
I want to manage expenses
Managing expenses is a top concern for almost every business. That is why business owners often protect themselves with a business overhead expense (BOE) disability insurance (DI) policy. If a sudden illness or injury kept you from running your business and generating revenue, how long could you ‘keep the lights on’? A BOE policy is designed to help cover overhead expenses, such as rents, leases, and employee salaries. With BOE, you can help your business stay healthy, even if you aren’t.
I want to protect my partnership
If your business is a partnership, you may already have a buy-sell agreement in place to ensure the smooth transition of ownership in the event of death. The same rationale applies to a disability buy-sell agreement. In fact, your life buy-sell agreement may already include an unfunded disability clause. However, the concept of ‘disability’ is often far more difficult to define and describe than other buy-sell triggering events. Setting forth the conditions in which an individual is deemed to be disabled is essential to any successful partnership agreement.
I want to protect my financial future
Being in business for yourself lets you set your own direction and goals. It also lets you reap the rewards of your hard work. The success of your business, and the income you generate, helps drive and fund your personal retirement and estate planning strategies. Protecting a portion of your income if you became too sick or hurt to work – as well as protecting your ability to continue saving for retirement – should be one of the goals that your business plan addresses.
I need to protect my employees
When it comes to employee disability, many business owners neglect to plan ahead. In addition to offering your employees individual, fully portable DI coverage at a discount,* you can establish a Qualified Sick Pay Plan (QSPP).** A QSPP sets company policy before an employee disability occurs, detailing who to pay, how much to pay, and for how long. A QSPP is recognized by the IRS, so you can continue to provide wages and benefits to an employee too sick or injured to work without adverse tax consequences.***
* Subject to approval. ** The employer will need to create the actual documents specific to his or her business with the assistance of their legal counsel. *** The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. MassMutual, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
What if you or your partner became disabled and could not work?
How much would you need to keep the doors of your business open if you became disabled?
Why DI?
As a business owner, you probably have the same concerns as others like you. However, many business owners overlook the effects on the business and their employees if they were to become too sick or hurt to work. Whatever concerns keep you up at night, there are solutions available that can help protect your business, your employees, and yourself.
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