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Overview

What happens if you receive a serious diagnosis or injury that puts you out of work? It’s obviously something that we don’t want to think about, but the reality is that any of us could face this situation and be forced to step away from our regular income. What happens to your family? How do you deal with the sudden loss of income for your business? We’re discussing these topics and more in today’s show, focusing on disability insurance.

Aaron Channing is a personal friend and a financial advisor who works with small business owners to develop financial goals and help with insurance needs. Aaron teaches that it’s NOT really all about how much money we make as practitioners, but how we protect that income in the face of unforeseen circumstances. We’re talking about the different types of disability insurance, what we need, how we prove our income, and what is reasonable to pay.

What We’ll Learn

• Disability insurance is very important as we grow our businesses and protect our families and our assets. “The biggest asset we ever own is our income. This makes you a multi-million dollar asset.”
• Aaron’s analogy of the machine that prints money: Would you pay 1% of its value to protect it?
• The most common disability: sickness
• Different types of disability insurance: How do I know what I need?
  • Short-term, the least common
  • Long-term, the most common
  • Disability Overhead Expense (DOE)—pays monthly expenses for business owners
• “Any” occupation vs. “own” occupation: What the terms mean for you
• How your proof of income is verified:
  • For W-2 employees: pay stub
  • For owners: last 2 years of income (MUST show more than $32,000 adjusted gross income
  • What if I can’t show the minimum income?
• A reasonable price to pay for disability insurance, which varies according to age and health
• What “riders” mean and the two most important ones:
  • Additional purchase benefit
  • Inflation protection
• Why you need to look for strong financial companies from which to purchase disability insurance
• Why you need to work with an experienced financial advisor
• What happens if you get a diagnosis first? Can you still find disability insurance?

Resources

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Thank You for Listening

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