What’s Your Cash Flow Worth?

July 6, 2018

Disability Insurance for Business Cash Flow Protection

Protect your cash flow with disability insurance

You have worked hard to build your business. To continue growing, there are certain factors that will determine your success. Cash flow control is crucial to ensure your business is prepared for the opportunities and challenges that lie ahead.

However, few business owners are prepared for unexpected challenges such as a disability. According to the social security administration, people in the labor force are four times more likely to become disabled than dying before reaching retirement age.

Not only is a disability more likely than a premature death during the most productive years, it’s potentially more devastating financially since income decreases while expenses and debt increase.

While most business owners are vulnerable to an unexpected disability, few are fully aware of the benefits and characteristics of disability insurance policies. There are products that can provide a monthly income and others that can help pay business expenses while a business owner recovers from a disability.

While most people get disability income insurance through their job, small business owners lose this benefit when they decide to strike out on their own. To cover this gap, they should consider policies that can be purchased individually. However, age and health status determine price and eligibility so postponing a decision could be costly.

Depending on your personal situation you should expect to pay between one and three percent of your annual income for a disability insurance policy. For example, someone with an annual income of $80,000 could expect to pay between $800 and $2,400 per year. Cost is always an important consideration, but you also need to evaluate what your cash flow is worth to you and your business?