Do you know what you have, and do you have what you need?

Business Insurance

Click on the following links for informational videos:

 Life Insurance for Businesses (2 min)
 Disability Insurance for the High Wage Earner (1.5 min)
 Disability Insurance for Small Businesses (2.5 min)
 Self-Insuring vs. LTC Insurance (4 min)

Life insurance and disability insurance play an important role for the business owner in protecting and enhancing the value of their business. Life, disability and long term care insurance play an important role in the business owner’s personal and family financial and estate plan.

Life insurance has evolved from the most simple of term life policies to complex cash value policies with disability and long term care riders.  As a business owner, life insurance plays a critical role in providing collateral for future growth, funding for a buy-sell or key person agreement as well as provides opportunities for golden handcuffs and tax free retirement income.  Life insurance can be a creative option to get income out of the tax cycle. 

Often disability insurance is overlooked with regards to key person and buy-sell agreements.  But one is more likely to become disabled than die at any age.

Overhead disability insurance is an extremely valuable and versatile asset that enables business owners to collect based on the expenses of the business such as rent, heating, and payroll, when they become disabled. This type of insurance is less expensive than traditional individual disability insurance and less reliant on the owner’s net income.

Ideally, individuals and business owners would want a comprehensive individual disability policy to replace their income for the duration of their working years.  But for business owners who reinvest most of their income back into your business or are thinking about disability insurance at older ages, the premium may seem unmanageable. 

A 2 year disability policy provides the business owner the peace of mind at about half the cost.  Two years is the critical time period for filling the gap until government social security (SS) disability pays.  The 2 year benefit may be all that is needed with a recoverable disability.  SS disability insurance is the government plan for total disability.  It is only for those who can prove or have already been disabled, unable to work in any profession, for 12 months, which is often too late for a small business to survive.

Long term care insurance is an increasing important protective benefit that has the unique tax benefit that even when premiums are paid by the business the benefits are still received tax-free by the owner and/or employees. 

The only thing protecting your retirement plan is good health.  To qualify for long term care government financial support, one needs to meet the definition for Medicaid, which requires income at the poverty level and assets less than $150,000.  So even for the moderately successful business person, long term care will be a self-funding event, unless an alternative long term care funding option is identified. 

The first step is identifying the insurance protection your business has in place and then calculating your business needs.  With over 30 years of experience as a health care professional, insurance agent and licensed insurance adviser, Linda Thalheimer helps businesses through this process. Linda’s knowledge and experience in understanding medical and contract language enables her to provide the most appropriate and competitive quotes and options based on health, age, gender and need with the most appropriate companies. 

Many business owners already have a relationship with their insurance provider.  As a Licensed Insurance Adviser in Massachusetts, Linda offers a fee-based option to provide comprehensive, unbiased reviews and recommendations.