Preparing for unknowns (accident insurance)

[Convict charlie]

That makes more sense to 'separately' have a firewood biz...couldn't quite figure that out, although versed in deciphering texts messages.

I appreciate the info, too, and have been looking at these things. Having payments due would really be a place where the Biz Expenses insurance would be a savior. I'm hesitant to finance a $50-60K bucket-truck and a much bigger insurance premium, being that I don't have other earners for the company if I'm not out working, supervising, and doing the technical parts.

They generally will do around 60-70% for a policy like that or a personal disability one. They don’t want to over-insure and give you no reason to not go back to work.

What I would suggest is you find a non captive agent. That means they can write a number of companies. Examples of captive companies are ny life and northwest mutual. Non captive would be MassMutual as well as a number of others. Individual or policies like an overhead I write through mass mutual. I have the ability to go through other companies though. MassMutual or the other companies would write the business but it’s going to come in at double the costs you could find on an open market. They like doctors, lawyers, accountants etc. The non captive would also have the ability to bid it out on the open market to see where one would be that fit better. Mutual of Omaha is generally a company from what I have seen that will cover work with an inherent risk.

 

[Steve Connally]

I have been looking for disability policies for a year now. Can you tell me more about the insurance that covers the business if I go out with an injury?

 

[Mark Chisholm]

I have been looking for disability policies for a year now. Can you tell me more about the insurance that covers the business if I go out with an injury?

I had trouble getting disability insurance as well until we were able to show that I spend some time teaching and doing other less risky tasks, show my track record, and also provide them with the certifications I have which help demonstrate a higher level of training and safety than the industry at large. Maybe that can help you as well?

 

[Convict charlie]

I have been looking for disability policies for a year now. Can you tell me more about the insurance that covers the business if I go out with an injury?

It is a business overhead policy. It will cover the expenses of the business in case of a disability. It doesn’t replace personal income though. Just your payments or costs that you can show as a general part of the business. Most likely rent or a mortgage, utilities, and a slew of other things. Generally I would think Mutual of Omaha would be the ultimate end carrier for this. They take on risks.

Your best bet on a personal disability policy may be through a voluntary or supplemental carrier. Generally colonial life (Paul revere in New York) as I know policies have been sold to tree companies here. I’ve never done one before. Just need to have 3 employees total. It can be setup for payroll deduction or just a monthly draft through a third party company called piedmont pay. Only one employee or even yourself needs to sign up.
This is a short term disability product (up to two years) where as a long term disability product is longer (from two years, five years, age 65, and age 67).
Basically the agent will put all your information on a computer once it is setup. Can play with it quite easily as far as costs in front of you on the short term disability from colonial life.
Few factors are how much income do you make and are looking to cover?
Elimination period. Which is when do you want the benefits to start? 0/7 is lowest which is 0 day accident and 7 day disability. Other options would be 7, 14, 30, and 60 day ones for it to start.
How long will the benefit be? 3 months, 6, 12, and 24.
Came back to edit this to add age. There’s two brackets age 18-49, and 50-64. Price doesn’t change if you’re in the younger bracket and sign up. Then all of a sudden keep the policy and you’re older.
Most we generally sell are about a 6 month benefit and a 14 day elimination period on a short term disability product. You won’t go broke or bankrupt after missing two weeks of work. Anything more than 6 months most likely get on some form of social security after that.

Edited to add this also. You can probably do Aflac also but with their 250 million marketing budget Aflac is generally about 30% more expensive on disability and other products than colonial life is.

Hope that helps.

 

[Convict charlie]

One more thing I didn’t mention on long term disability policies for personal use. If it’s done through a business if you’re able to get three people to sign up it will waive underwriting requirements. That would work for bigger companies on here. It divides the expected risk. Even if say a person was uninsurable from a past disease or overweight etc. they usually have pretty stringent underwriting on just a single policy.
Supplemental on short term disability is fairly easy to get. Just a few questions face to face.

 

[Steve Connally]

Thanks so much for the explanation. I really appreciate it.