Broad Array of Roles for
Disability Coverage
By John F . Nichols MSM , CLU
Summary :
Most people agree that protecting personal income with disability insurance is important however they have never thought about the role disability insurance can play with key employees , loans , divorces and more .
In the world of disability insurance , most financial advisers think of personal income protection . This is only the beginning of the possibilities that the adviser may be able to provide to safeguard clients , their businesses and assets . There are many products available within the disability insurance realm and diverse opportunities to provide your expertise .
Diversity of Product : Key Person
The most valuable asset in a business is the people . Imagine if one of your key executives had an illness or an accident and was unable to work and continue creating revenue and profit for your company . What effect would this have on the bottom line ? How would you replace the lost revenue ?
Retirement / Deferred Compensation
At a closely held , family owned business , benefit plans favoring the family and the senior management are important for retention and reward . Over the past year , a non-qualified deferred compensation plan is put in place for the top 10 executives . What happens if one of the executives becomes sick or hurt and is unable to work and contribute to the plan ? Can the plan be funded ? If yes , how ?
Contract Fulfillment
The board of a company just signed the largest contract in company history for a new CEO . The contract has financial guarantees , performance bonuses and the other usual language . What happens if the CEO becomes ill or has an accident and is unable to perform his duties ? The company is on the hook for the financial guarantees . Should this be funded out of company cash flow or have the liability transferred through a disability insurance policy ?
TODAY ’ S PRACTICE : CHANGING THE BUSINESS OF MEDICINE 64