Even a short-term disability can become a major issue, especially for those who are self-employed or who run their own business. While it is possible to purchase disability coverage as a business owner, there is often a great deal of confusion regarding which policies, plans, and providers may afford the needed level of protection. Identifying the appropriate level of coverage and giving insurance providers accurate information on earnings history in order to qualify for certain coverage options are never matters that should be left to chance.
Determine the Appropriate Level of Coverage
Many business owners pay themselves a salary out of their business's earnings. This is an arrangement that can greatly complicate disability coverage in the event of an injury. Plans that only cover the income that owners are being paid and not the operational losses that may be incurred, should owners be unable to manage the day to day operations of their business, are rarely the best option. While a policy that is able to cover operational losses for the duration of either a short-term or long-term disability can be far more expensive than plans that only protect an individual worker, they may also prove to be a critical asset.
Numerous records are often required by insurance providers in order to establish worker earnings and the cash flow and overall profitability of a business. These figures are often essential for determining rate costs, insurance premiums, and the level of coverage that may be purchased. New startups and ventures that have only been in operation for a short time can make it far more difficult to establish the income and earnings figures that are required in order to qualify for certain plans and coverage options. New business owners often require the services of a professional in order to find and select a disability policy that will be better suited to their needs.
Work with an Insurance Broker
Being limited to only a single provider can drastically reduce the range of coverage options that business owners have to choose from. Working alongside a professional brokerage or service provider helps to ensure that a greater range of options, providers and solutions may be found. For small business owners who lack the income and earnings history needed to qualify for coverage through a provider, the assistance of a professional broker can be a tremendous asset.
For more information on getting disability insurance, or if you have more questions on how to decide the best insurance for your business needs, contact us now! We provide small businesses and individuals various types of health plans to help them protect their health while meeting their financial goals.
The Central Valley of California has some great options when it comes to group insurance and employers who offer health benefits to their employees tend to see less turnover.
You attract and retain the most qualified employees. The perceived value of employee benefits has been boosted by people’s recent concerns about Health Care Reform and slow job growth. The number of employees who agree that benefits are a “very important reason” they joined or stayed with a company has risen significantly, according to MedLife 12th Annual US Employee survey.
In the Modesto, California area, there are several options when it comes to health insurance carriers. Not only do you have access to HMOs (Health Management Organizations), you also have access to PPOs (Preferred Provider Organization). The difference between an HMO and PPO is convenience.
With an HMO, usually everything is contained in one building, example Kaiser Permanente. Your doctor will refer you to a specialist, only if they feel it is necessary. You will have to take an active role in your healthcare and be your own advocate.
With a PPO, you will have a Primary Care Physician (PCP), example Anthem Blue Cross. You can go to a specialist at your discretion, provided they are part of your network.
Most employers will go with one carrier and one plan, not giving their employees really a choice in their health benefits. There is another option available, an employer can choose to go with a Private Exchange and give their employees a buffet of options.
With a private exchange, the employer will pick which single tier or pick two neighboring tiers and how much they want to contribute; at least 50% of the employees premium. The employee then can pick either the base plan or decide to “buy up” to a richer plan, based on their needs. This allows employees within the same company to go with either an HMO or PPO. There is no extra work for the employer, there is one invoice each month to the private exchange, and they will handle the rest.
Let us know if you would like to explore your options when it comes to your Group Health Benefits.
George Beach, Owner/Broker
George William Beach Insurance Services
I recently sat down with Susan Baudler, a Realtor with Coldwell Banker Castle Real Estate, to learn about her services. Susan has lived and worked in the Central Valley for over 25 years.
Coldwell Banker Castle Real Estate
Phone & Text: 209-985-9969
CAL BRE# 01894922