Small Business Disability Insurance:
Higher Volumes Result in Lower Costs
Sometimes putting your employees first benefits you, them and your bottom line. Sophia Parker was a 46-year-old accountant and a small business owner with two clerical employees. When she decided she needed income protection, she found protecting her employees’ paychecks as well as hers had multiple benefits.
When Sophia called a disability insurance agent about an individual policy for herself, he quoted her the following:
Disabling Definition: Own-Occupation
Benefit Amount: $4,000 per month
Elimination Period: 90 days
Benefit Period: To age 65
Policy Features: Non-cancelable, Residual, COLA riders
Annual Premium: $4,829
Sophia understood the value of the disability policy and its worth, but it seemed expensive at $13.23 a day. With her budget, she wanted to spend about $10 a day. So, Sophia spoke with her agent again.
The solution the agent proposed was surprising. He found a way to trim nearly $2,000 off the annual premium, saving Sophia $1,762 per year. Most would think Sophia had to give up some disability income protection features, extend the elimination period or shorten the benefit period in order to lower the cost of her premium. But that was not the case.
Instead, the agent suggested that Sophia add her two employees to the disability insurance policy. By adding her employees, she could keep the exact same coverage and give her employees some benefits by taking advantage of multi-life discounts. Under the new disability insurance policy, Sophia’s employees were protected by a disability policy featuring a $600 per month benefit, a 365-day elimination period and a two-year benefit period.
So what was the cost of covering three paychecks versus the single policy originally quoted? The total annual premium was just $3,067 for all three lives — an incredible $1,762 less than what Sophia was initially quoted for just a single policy.
It is a win-win-win scenario for everyone. Sophia now has rock-solid small business disability insurance protection and her employees have an incentive to stay with her – FREE disability coverage.
Too good to be true?
This example may seem farfetched, but it’s true. When securing disability policies, higher volumes often result in lower prices. If you own a small business, you and your employees need the protection of small business disability insurance. Find out how multi-life discounts can work for you.