Picture this: You have spent years building a successful business, pouring every ounce of your energy into this dream from early morning to late night. Yet, have you ever stopped to think about what happens if, heaven forbid, you are suddenly unable to run your enterprise due to illness or injury? It is a situation difficult to contemplate, isn’t it? Many business owners have yet to read the page on disability income planning in their financial playbook. Let’s change that.
Why disability income planning is crucial
Business owners, I get it. Your business is your baby. You have nurtured it, watched it grow, and faced every challenge head-on. However, we are loath to think about our vulnerabilities, so it is easy to discard the idea that a day might come when we would be in no shape to steer the enterprise ship. While not a pleasant thought, disability is a reality many confront. And it is not just about you – it is also about the employees who depend on you, the clients who trust in your services, and the family that has supported you on your entrepreneurial journey.
Busting the “It won’t happen to me” myth
It is human nature to believe we are invincible. However, statistics paint a different picture. You might be surprised to learn that a significant number of individuals will experience a disability during their working years. It does not discriminate between CEOs and interns – every working individual is susceptible.
Let’s talk strategy
Okay, now that we have accepted the reality, what can we do about it? Disability income insurance can be a lifeline. It replaces a portion of your income, ensuring that even if your business hits a pause, your personal financial obligations will not.
Consider the following scenario: Sarah, a tech entrepreneur, injures her spine in a skiing accident. She is expected to recover, but it will take months. With disability income insurance, Sarah can focus on her health, knowing that she has a financial safety net.
However, there is an added layer for a business owner. It is not just personal income – what about business expenses? The office rent, employee salaries, and ongoing bills do not magically disappear. This is where business overhead expense (BOE) disability insurance comes in. It ensures that while you may be temporarily out of commission, your business remains solvent and operational.
A conversation with yourself
Disability income planning is more than just policies and numbers. It is a conversation with yourself, a commitment to your future self and loved ones. Start by asking the following questions:
How long can my business be sustained without my active participation?
What are my monthly personal and business obligations?
How will an extended period without income affect my family’s lifestyle and future plans?
When it comes to safeguarding the fruits of your labor, these tough questions form the foundation.
Seeking a guiding hand
Let’s face it: With its jargon and fine print, insurance can be a maze. While it is tempting to use a simple online calculator and call it a day, your unique situation as a business owner may require a customized approach. A chat with us can illuminate paths tailored to your specific needs. We can be the guiding hand, ensuring that the safety net you weave is both robust and comprehensive.
The entrepreneurial journey is filled with uncertainties and risks, making it all the more important to consider the possibility of disability. By addressing it head-on, you are not signaling defeat but showing foresight. After all, the greatest business minds are not only adept at seizing opportunities but also skilled at preparing for life’s curveballs. Here’s to your continued success, and may you navigate your way with both ambition and prudence.
Andrew Dickens
Wealth Advisor
