May is Disability Insurance Awareness Month and we encourage you, both the business owner and executive, to take a hard look at your current disability coverage.
1. Most group disability plans are designed to cover up to 60% of your base income. The plan definition for Base Salary may NOT include commissions, bonuses, etc. In addition, there are typically monthly caps on the base amount covered.
If you become disabled, the group coverage may ultimately pay 40-50% of your total earnings which is taxable. You may be financially exposed at a time when you can least afford it. Supplemental disability coverage can solve the problem.
2. During your career, you are 5 times more likely to become disabled than die. Further, The Social Security Administration tells us that more than 25% of today’s 20 year-olds will become disabled before they retire. Doctors buy disability insurance because they see first-hand what can happen during a career. If you don’t have your income protected you don’t have a financial plan!
3. “Owners are exposed on multiple levels. Typically they have life insurance funding for their buy sell in the case of death, but rarely in the case of disability,” says a Houston Financial Adviser. “If the owner becomes disabled, they may lose their income from the business, expenses will continue and they may not be able to return to the business or ultimately have to sell. Even worse, the business owner may also be the marketing/sales person for their company and revenues may decline while they are out. A triple whammy!”
Remember, disability is 5 times more likely than death.
We at Achilles Group care about you and are interested in making sure that you have an appropriate income protection plan in place. We have strong partnerships with consultants and companies that excel in helping business owners plan for their future and fund their future plans with the appropriate levels of insurance coverage. We will be happy to make an introduction for you. Please call us at 281-469-1800.