Disability insurance

As a business owner, you have multiple considerations when examining your disability insurance needs and may require additional coverage alongside their individual policy.

Types of insurance

Business loan protection

Often, your banking institution or lender will require that you have disability insurance to prevent you from defaulting on future loan payments in the event of a disability or illness. Business Loan Protection will pick up your payments where you left off or if you never recover.

Business overhead expense repayment

Business overhead expense repayment (BOE) can help cover your lease, employee salaries, insurance premiums, and other overhead expenses if you become disabled. If necessary, BOE can allow you time to develop a proper exit strategy while other aspects of your business are operating as normal.

Buy/sell agreement funding

A buy/sell agreement between partners identifies what happens to an owner’s share of the business if departure is unavoidable. Among other topics covered in this agreement, guidelines on disability are established. Disability insurance can provide a funding mechanism to pay for buy-out without causing owners to use personal cash or dip into the business’s cash-flow.

North Star offers comprehensive financial solutions for business owners so you can find overlap and blind spots without dozens of meetings with different specialists. We will evaluate your business, coordinate our specialists, and customize a roadmap for you.

Employers of all company sizes have innumerable options when deciding which benefits to offer employees. Quality benefits lead to higher morale, company loyalty and all-around employee satisfaction. Several options are outlined below that North Star can help guide you on:

Types of insurance

Group long-term disability insurance

Available for as few as two employees, this particular benefit can be designed in a way to both maximize efficiency while keeping costs down for the employer.

Executive benefits

This plan allows you to “carve out” your key employees or executives that you wish to offer unique benefits to, namely disability insurance. Premiums for this are marginal and can be deducted by the company, yet benefits paid in the event of a disability will be far larger than if you instead paid them the premium amount in cash bonuses.

Guaranteed issue coverage

One of the biggest obstacles in applying for individually owned disability insurance is qualifying based on health. As an employer, you can offer individually owned disability insurance with no medical history reviews or exams and no exclusions.

Key-person replacement

Key-person disability insurance is designed to compensate the employer when a disability happens to an employee with high productivity and ability to drive revenue growth. Typically, this pays in a lump-sum that can be used for whatever is necessary to offset the costs of losing the key person.