Can your business survive if you become disabled?

Business Disability Insurance usually has 3 different types of products. 

Business Overhead Expense plans provide a monthly benefit amount which is calculated based on your company’s eligible fixed expenses.  In the event that you become disabled, the product would pay for the approved amount after a 30 day waiting period.  The benefit period can range form 12-24 months and could ultimately protect you from bankruptcy.

Keyperson plans provide benefits in the event that a key employee becomes disabled.  This type of coverage often alleviates the financial burden from a business and can be instrumental in the business’ survival.

Buy/Sell plans, combined with a shareholder’s agreement, can be designed to provide the funds to help business owners purchase the shares or ownership interest of a totally disabled shareholder or partner.

 

Statistics: 

On average, 1 in 3 people will be disabled for 90 days or longer at least once before the age of 65.

The average length of a disability that lasts over 90 days is 2.9 years.

3% of mortgages are foreclosed due to death, 48% due to disability.

Arthritis is the most common cause of long term disability in Canada.

Between 1991 and 2031, the prevalence of disability due to arthritis is projected to grow from 2.3% or 572,000 Canadians to 3.3%