Alberta Life, Disability, and Health Insurance Since 1983

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Posted: 1 Apr '22

Why it is Crucial for Business Owners to Have Disability Insurance

Why it is Crucial for Business Owners to Have Disability Insurance

When running a small enterprise, many things can put you out of business: natural disasters, lack of funding, economic downturn, growing competition, or a pandemic. Indeed, many small business owners list factors outside their control. However, what happens when the factor is your disability? Accidents and illnesses can strike at any time and affect your work life. What happens if you’re hospitalized or recovering for months or years? Disability insurance is a safety net for your income when a disability strikes. Call us to learn more!

What Is the Impact of Your Disability?

When you’re sick or injured, it may be impossible for you to work. As such, you may be forced to close down your small business or slow down on operations. Consequently, your incapacity to work due to a disability may cause financial hardship. 

Disability insurance provides cash relief for the period you’re out of work. A short-term disability policy is typically for short-term injuries or illnesses that you can recover from. On the other hand, a long-term disability policy is for injuries and illnesses lasting for several months, years, or permanently. 

Short-term Disability Vs. Long-term Disability 

Short-term disability offers benefits for short periods. It offers great coverage but may cost just as much as long-term disability insurance but does not offer cash relief for an extended period. Also, short-term insurance is best for illnesses you can recover from. If you don’t recover in a short period, you may not be eligible for benefits. 

Long-term disability policies are a better option for small business owners. It offers benefits for extended periods such as 10 years or longer. There are also long-term disability plans that cover you up to 65 years. 

Also, as a business owner, you have to consider disability insurance for your employees. What happens if they are injured or hospitalized for months?

Disability Insurance for Small Businesses 

There are two options to consider for disability insurance in your business. 

The first is group disability insurance, where you pay for one plan for several people. For example, you can get group a disability policy for your employees. Usually, all the employees are covered by one plan where they may pay part of the premium. The employer can also cover part of the premium. 

However, with individual coverage, you are the only person that gets the benefits. Because the risk is higher, you have to undergo an underwriting process to determine the benefits you qualify for. 

Disability Insurance for You 

You’ve worked hard to establish your business and make it what it is today. Don’t leave the fate of your business up to chance should an accident happen. Protect yourself, your employees, and your business with a disability policy. Speak to a Vistaplan advisor today to discuss your options.


About the Author - David Motkoski

David Motkosk At the Helm of Vistaplan Financial Group

David is a well-respected insurance advisor with over 30 years of experience helping healthcare professionals, business owners, and their families secure their financial futures. He takes the time to make certain his clients understand the life, disability, and health insurance products they are purchasing, so they can make the right choices for their budgets, plans, and futures. CONNECT WITH ME ON LINKEDIN

Life & Disability Insurance for Alberta Health Care Professionals, Business Owners, and Their Families Since 1983