As a business owner or worker, it is essential that you prepare for the unexpected. While you may have invested in preparations for how your business could operate should something occur that takes you out of commission for an extended period of time, have you thought about what you would do for yourself?
While nobody likes to think about being disabled and unable to work, it is essential that you plan today to prepare for the unknowns of tomorrow.
Understanding Disability Insurance
Disability insurance for business owners is essential. If you are doing relatively well financially, you may be interested in finding out how much you can insure yourself should the unexpected happen. Here’s a quick breakdown to help you gain an idea of what to expect.
If your average monthly expenses are $5,000, you will need to find an insurance option that helps you cover your expenses if you are unable to bring in your monthly income. Most disability insurance policies come with both premiums to pay and waiting periods before you can expect payment.
Make sure you are ready to pay your premiums, as well as have the money available to help you wait out the expected period of time it will take before benefits set in. This will help you move forward in the days ahead with confidence should the unthinkable happen.
Different Occupations - Different Rates
Another important aspect to remember is this: different vocations and occupations have different premiums for their disability insurance.
For example, someone who works on a road crew who is at risk of injury may find that they pay more for premiums than those who work at a relatively safe office job. This can help you better estimate what you would likely pay when budgeting for premiums.
Don’t Forget The Cost Of Living Adjustment
Depending on when you become disabled, the years that pass may increase your overall cost of living. Make sure that your policy has a built-in cost of living adjustment that ensures that you are covered as the prices of common necessities rise.
This can be a life-changer should you find that you are disabled for a period of time that leads to higher inflation of goods and services.
Take An Offensive Position & Prepare Today
One of the best moves you can make in your journey toward personal wealth is to take an offensive position in your financial life. This can include many aspects, and most certainly pertains to how you prepare for the future.
Rather than wait for life to happen and try to react, consider taking an offensive posture that prepares you today with forward-thinking investments. Life is full of unexpected twists and turns, and the more you are prepared for tomorrow, the more you can enjoy today.
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