My last blog entry was about the importance of disability insurance. This entry, to build on the last, is for business owners. Here’s a staggering statistic: only 13% of small business owners have disability income insurance. Think about that… 87% of small business owners have NO protection against long term income loss as a result of a disability. Why is this statistic so concerning? Well, as an entrepreneur, your ability to earn a living is directly proportional to your ability to run your business. Typically, when a small business owner becomes disabled, the business can no longer operate at full capacity in addition to the owner’s personal finances becoming jeopardized.
Now let’s think from the perspective of the employer/employee relationship. 61% of employees surveyed said good employee benefits encourage them to work harder, perform better, and keep them working for their current employer. So by simply offering good benefits, you have a much better chance of retaining your best employees!
OK so now let’s take a look at a few numbers. Below is an excerpt taken from an actual benefits summary for a law firm on Long Island:
|Employee #||Age||Gender||Annual Income||DI Monthly Benefit||DI Monthly Premium||DI Annual Premium|
To summarize, for $4,155 per month, these 10 employees can have a combined monthly DI benefit of $94,776 (you’ll notice that the annual premium is less than 12x the monthly premium – this is because most policies offer a discount for paying annually rather than monthly).
Even better, did you know that if you’re a law firm, accounting firm, large medical practice, or other white-collar type of business, with 5 or more employees, you can obtain an individual guaranteed issue disability policy for $10K-20K of monthly income regardless of your health situation? And to that end, you can obtain it at a cost that is significantly less than if you were fully underwritten. Furthermore, you can also apply this to Long Term Care and Life insurance.
If you’re a business owner you have a whole world of opportunities available to you and your employees. Call today to speak with a Greco Planning Group partner about how you can take advantage of them.
Amanda W. O’Neal – Director of Underwriting