SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
Beth A. Botti, CFP®, ChFC, CLU, CDFA™
Financial Consultant
California Insurance License #0G24537
612 Wheelers Farms Road, Milford, CT 06460
Phone: 203-877-6556 Ext. 169
Fax: 203-301-0736
Email: beth.botti@equitable.com
November/December 2019
Protect Your Business
You may know about group disability income (DI) insurance because your company offers it as an employee benefit, but did you know that there is also individual disability income (DI) insurance that can help protect your business in two ways? You can use it as a way to buy out a disabled partner or to help your company financially if you lose a key employee and, consequently, productivity due to disability.
DI to Buy
Properly structured, a DI buyout agreement or DI buy-sell arrangement can provide the funds to buy out a partner or co-owner. These types of arrangements are typically for smaller businesses and they include a number of qualifications and limits.Such an arrangement would trigger a buyout in the event of a permanent disability as defined by the disability insurance policy and the agreement. The insurance policy usually includes an elimination period – the period between when the disability is identified and payments begin – of between a few months and a couple of years, with the longer periods resulting in lower premiums.
DI to Protect
Another way to financially protect your business is through key person disability insurance. As with a buy-sell agreement, a DI key-person arrangement will define what constitutes permanent disability, include an elimination period and ultimately provide the cash flow necessary to keep the business running smoothly while the key employee is replaced. A separate group DI insurance policy such as one offered to all your employees would pay the disabled employee in the event of permanent disability.Unlike a buy-sell agreement, key person DI insurance would pay benefits to the company and not the employee. The company can use benefits to recruit potential successors to the disabled employee, pay for training and compensate the company for related financial difficulties while the new employee gets up to speed.
DI for the Masses
While key person DI insurance is appropriate for smaller companies that don’t have an obvious or adequate replacement for a disabled key person, group disability income insurance can be a crucial employee benefit to attract hard-to-find talent and keep workers happy and productive. Talk to an insurance professional to learn more.GE-2572772 (06/19)(exp.06/21)
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in UT; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services. Representatives may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed. Your connection to this website does not necessarily indicate that the sender is able to transact business in your state. The information in this website is not investment or securities advice and does not constitute an offer. For more information about Equitable Advisors, LLC you may visit https://equitable.com/crs to review the firm's Relationship Summary for Retail Investors and General Conflicts of Interest Disclosure.
GE-6572038.1 (4/24)(Exp. 4/26)
CFP®, and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.
www.equitable.com
Check the background of this investment professional on FINRA's BrokerCheck
Equitable Advisors, LLC and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.