Producers who work closely with business owners most likely have discussed plans to continue the business in the event of death. A natural extension of this planning is to make your business clients aware of two equally important needs that can be overlooked - disability buy-out and overhead expense coverage.
While many business owners plan for the survival of their businesses in the event of death, many don't consider the effects of disability on the firm's future. Or, like many of us, they just don't believe they will ever become disabled. Two types of coverage can help.
1. Disability Buy-Out Insurance provides funds for the purchase of a
disabled business owner's interest in the event of a long-term, total disability.
2. Overhead Expense Insurance covers operating expenses of a business
when the owner can no longer generate revenue due to disability.
The two products work nicely in tandem. Overhead expense fills the gap immediately following the onset of disability to keep the doors open. If the disability becomes long term and a buy-sell agreement is in place, disability buy-out can fund this obligation.
The market for disability buy-out and overhead expense is primarily small businesses. The owners play an active role in the business and often, their personal service is essential to the business' survival. By offering disability buy-out and overhead expense, you can address the full line of business continuation needs of this market. You'll also be in good position to generate additional compensation by expanding your markets and product lines.
News, updates, and discussions from the world of disability and long-term care insurance
