NJ Disability Insurance individual and business owners DI policies.

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Protection for the Business Owner and the Professional

When You’re the Employer - AND the Employee - Who’s There for You When You Need Support?

Whether you’re a sole proprietor, a partner in a business or a professional in a practice, you need special forms of disability insurance to protect your business-and yourself. And with us, you get the highest quality business DI around:

Policies that pay benefits or reimburse expenses if you are unable to perform the material and substantial duties of your own occupation due to a covered sickness or injury.
Policies that can fund Buy-out agreements in the event of a serious prolonged total disability.

Individual Disability Policy
Would the loss of your earned income cause financial hardship? See how a individual policy can help you to continue the quality of life you and your family are accustomed to if an untimely illness or injury occurs.

Overhead Expense
Who pays the office expenses if you’re out on disability? See how Overhead Expense insurance can help keep your business or practice going if you or a partner or fellow owner is too sick or injured to work. Available for professionals and for business owners.

Disability Buy-Out
An important consideration for partnerships, S-corps and C-corps. See how our DBO can help your business and serve all parties’ interests in the case of a partner’s long-term disability.

Qualified Sick Pay
Here’s a “perk” that can help you attract and keep the best in the business. Offer your key employees our Qualified Sick Pay plan to help replace their income and pay the bills if they ever become disabled.

INDIVIDUAL DISABILITY INSURANCE...Protect your greatest asset.

If you are unable to work, could you continue your lifestyle? If your family is left without your income, could they live at the level you want them to have?

Protecting your greatest asset, the ability to earn an income, is the most important thing you can do for yourself. Therefore having a disability policy that possesses a true own occupation provision is vital. A true own occupation provision states that if you cannot perform the material or substantial duties of your occupation than you are considered disabled. Having this provision will allow you to work in another profession, earn an income, and still receive the benefit tax-free.*

"Depending on who pays. Consult your tax advisor."

It doesn't matter what profession you are in, this insurance is the most important financial instrument you can implement for yourself. You have worked very hard to get to this point in your career and the most important step you can take is protecting it.

How Likely Is It That One of You May Become Disabled?

Unfortunately, you are not immune from illness or accidents simply because you are vital to the success of a particular business. Consider the statistics on the subject -

The fact is, that in a multi-owner business, the chances of an owner’s becoming disabled for 90 days or more before age 65 are startlingly high:

With 2 owners, both aged 35, there is a 34% chance that one will become disabled*
With 3 owners, all aged 35, there is a 47% chance that one will become disabled*
Of all 45-year-olds disabled for one year, by the end of five more years:
19.9% will have died*
57.5% will still be disabled*

*1985 Commissioners Disability Table (Statistics shown are based on data collected from independent disability carriers and reflect only individuals with DI policies.)

Get Well Soon . . .
And Don’t Worry About the Office.

Overhead Expense Insurance . . . Takes Care of Your Office Expenses While You Recover

If you’re a professional in a practice . . . or a business owner with a company to run . . . you know how difficult it is to get away from the office for even one day.

Now, just imagine how difficult it would be to make sure that your business or practice could function normally if you were disabled-out of the office for the months often required to recover from a total disability.

That’s why it’s vital to plan for protection in the event of a disability-protection for yourself and for your office.

If you have a good personal disability income insurance policy, it will help you make ends meet while you are laid up. But what about the office expenses you usually pay - who’s going to cover those? It’s particularly difficult to find the money to keep your office running while you’re earning less due to your disability. And that’s where Overhead Disability Insurance can help.

Overhead Expense Insurance reimburses you during your disability for the usual office expenses, such as:

rent
electricity
heat
utilities
telephone
real estate taxes
interest on debt

Of course it’s high-quality coverage -
Own Occupation, Non-cancellable and Guaranteed Renewable, with the same premiums guaranteed until age 65. And with two different forms of coverage - Professional and Business - there’s a policy that’s just right for you.

Business Coverage
Reimburses totally disabled policyholders for the above, plus janitorial and maintenance services on your business premises-along with various other fixed expenses that are normal and customary in your business. Does not cover your salary (or draw or fee) or employees’ salaries.

Professional Coverage
Reimburses the above plus salaries of employees who are not members of your profession - and, for six months, 80% of the salary you pay a member of your profession to fill in for you in your practice (as long as the replacement is not an owner in the practice).

No Hard Feelings

What would you do if you or your partner became disabled?

Luckily, someone’s already thought of the answer.

Disability Buy-Out Insurance Provides the funds for a buy-out if one of you becomes disabled

You and your partners have grown your business from day one… so it’s hard to imagine what would happen if suddenly one of you were disabled. Many partners realize from the beginning that they need to plan for a buyout in the case of death, and purchase life insurance to fund for that possibility. But few are as well prepared for disability.

Provides a Ready-Made Solution to an All-Too-Common Problem

Chances of one of the owners in a multi-owner business becoming disabled for 90 days or more before age 65:

With 2 owners, aged 35-34% chance*
With 3 owners, aged 35-47% chance*

Furthermore, many disabilities are very lengthy, or permanent: Of all 45-year-olds disabled for one year, 5 years later . . .

19.9% will have died*
57.5% will still be disabled*

*1985 Commissioners Disability Table (Statistics shown are based on data collected from independent disability carriers and reflect only individuals with DI policies.)

Life Goes On…Even After a Disability.
(And so can your business).

Fund a Buy-Out that’s Fair . . .
Keep Your Business Up & Running . . .
with Disability Buy-Out Insurance

Business Disability Buy-Out Insurance - The Best Way to Meet the Needs of All Owners - and of the Business Itself.

How it Works:

The company purchases policies on each eligible owner (entity purchase); or each owner purchases a policy on the lives of the other owners (cross purchase). If one of you becomes totally disabled and a buy-out is triggered, benefits are paid according to the pay method selected - lump sum, monthly, or a combination of the two.

These benefits are paid to the company or the active owners for the purchase of the disabled owner's interest. Payment is based on the pre-determined fair market value of the business. See your agent for more information.

With the disabled partner recompensated for his or her share of the business, the others are then left free to rebuild the company-without the crushing financial obligation of funding the buy-out from the company’s reserves.

How can the conflicting needs be met satisfactorily, cost-effectively and amicablly?
Here’s how each interested party might see things.

The Remaining Owner’s Point of View . . .

How long can we afford to operate without our partner’s help?
When should we begin to think about hiring a replacement?
What happens now to the business loans the bank made us both sign for personally?
Will our creditors and customers or clients begin to lose confidence in our viability?
How can we continue to include our partner in our decisions when he or she can no longer participate in our operations?
Will the spouse or children of the disabled partner want a say in running things?
Will our disabled partner sell his or her interest to a competitor?

The Disabled Owner’s Concerns . . .

How can I hope to recover my capital investment?
Why should I have to let someone else use my money to run my business?
Where is the return on my money that I should be receiving, considering I helped found the business?

The Business’ Best Interest . . .
Last but not least, it’s important to consider what’s best for the business overall. Obviously if the business goes under while affairs are being reorganized, it will certainly not help any of the principals . . . the employees . . . or the customers or clients. That’s why a buy-out agreement specifically designed to cover the possibility of a disability is a vital. And so is the insurance specifically designed to fund that buy-out.

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