Should a Small Business Owner Buy Disability Insurance?

Small business owners should purchase disability insurance if their income in the case of an emergency will not cover all living expenses. Only you can judge whether this is the case in your life by considering a few factors at hand.

Home Responsibilities

You may be the primary bread winner for your family. If you provide for more people than yourself, it is highly risky not to carry disability insurance. Ask yourself what would happen to your dependents if you were unable to work for a period of time. Would your home go into foreclosure?

On the other hand, if you have no dependents or if your salary is only supplemental in your home, there may be little risk if you lost your income. Consider these factors when you choose disability insurance.

Alternative Benefit Options

Be sure to take into consideration any other options you will have if you should become disabled. For example, if you are a veteran, your benefits may sustain you. The same could be possible for a public servant, such as a retired police officer or teacher. However, most small business owners need to rely on Social Security Disability Benefits if they do not have private policies. These payments tend to be very low, and they may not be enough to sustain you in your time of need. In this case, a disability policy may be wise.

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