We will soon be putting 2020 behind us, and the many challenges that came with it. With the year ending, it is time to plan for the future and develop business strategies to carry agricultural enterprises through 2021 and beyond. Sustaining a living from the land has several meanings, but ultimately the farm needs to financially survive and hopefully thrive. Income generated allows producers to pay bills, and provide a standard of living they are accustomed to. An accident or illness can change a person’s ability to function and do what you typically do to make a living. One of the best ways to protect your income and assets is with disability income insurance.
Personal Disability Insurance
If an unexpected accident occurs, personal disability insurance is there to help policy holders by paying basic monthly living expenses should they become sick, injured or totally disabled. This type of insurance is designed to cover monthly expenses such as mortgage, rent, utilities, and groceries. It is pretty tough to predict an accident, but with personal disability insurance policy holders will benefit by protecting their financial future.
Business Disability Insurance
As a small-business owner, there is plenty to worry about including paying business expenses and personal bills if you become sick or injured. Business disability insurance is designed to reimburse your monthly eligible fixed business expenses in the event of sickness, injury or total disability. Covered expenses include lease or rent payments, mortgage, utilities, employee salaries and payroll taxes. As a business owner, premiums are generally tax deductible and guaranteed renewable to age 67, which means as long as premiums are paid, the policy cannot be canceled.
Optional Riders
There are optional riders available for both personal and business disability insurance that provide flexibility with your disability insurance plan. Below is an overview of some to consider.
Return of Premium Rider – Between ages 65 to 67, you are eligible to receive a refund of 100% of the money you spent on policy premiums less any benefits paid. The Return of Premium Rider provides coverage if needed and your money back if you don’t. It’s a win, win.
Retroactive Injury Benefit Rider – If the policy holder becomes totally disabled within 30 days of the injury, benefits are paid.
Guaranteed Insurability Option (GIO) Rider – Disability insurance needs change as your income increases. The GIO rider for personal disability insurance, allows policy holders to purchase additional coverage up to five times, every two years, prior to age 55. For business disability insurance, policy holders can purchase additional coverage up to five times, every 12 months prior to age 60.
A new year provides a new perspective. Protect your future with disability insurance by contacting Lyman Agency today, at 860.349.7064 to set up an appointment to discuss your personal and business insurance needs.
