Your earning ability is your most valuable asset. If you become sick or inured and can’t work, how will you meet your monthly expenses? When disability interrupts or eliminates income, living expenses and other bills still remain.

The potential in the U.S. to become disabled is a reality you can’t afford to overlook or ignore. Changes are, you already have at least some life insurance. But according to the Bureau of Labor Statistics, although 87 percent of employees in the U.S. own group life insurance, only half that many have disability insurance through work. *

In the United States: The National Safety Council reports that a disabling injury occurs every 1.5 seconds. ** And the American Cancer Society predicts about 1,284,900 new cancer cases to be diagnosed in 2002. ***

We know disability isn’t something you think about every day. But failing to recognize its potential -- and plan accordingly – can be devastating.

The Options are Few

If you become disabled, what can you do?

Collect Social Security?
Many people think Social Security will cover them if they become disabled. But not everyone who becomes disabled qualifies for Social Security disability benefits – and it doesn’t take care of everything, even for those who do.

Using your savings?
After your monthly expenses, how long will your savings last?

Borrow money?
If you’re not working, how would you make your monthly payments? Could you even get approved for a loan at this point?

Sell your assets?
Most people consider this to be their last resort. Not only do people not particularly want to part with their possessions, they rarely get full value for them when they do.

Be Prepared

Insuring your earning potential is every bit as important as insuring your life, house or car. Your whole standard of living is, to a great degree, dependent on your income. You have assets – but it’s your steady paycheck that secures your ability to retain them. No matter how comprehensive your medical coverage may be, it’s important to make sure you’ll have money available to help meet your financial obligations if you become disabled.

And if you’re a small business owner, you need to be prepared to protect your personal and business needs. How would becoming disabled affect the business you’ve worked so hard to build?



Business Overhead Expense

Tax Deductible

Your Overhead Expense Policy has been designed to meet the requirements of Internal Revenue Service rulings which allow certain business and professional men and women who are sole proprietors, partners and stockholders/employees of a business to use premiums for the policy as direct business expense for tax deduction. This is based on current tax code.

The Options are Few

If you become disabled, what can you do?

Close until you recover?
When you close your business temporarily, you risk losing your customers – and employees – permanently. Your customers rely on your goods and services. Your employees depend on their jobs for their income. Neither can wait on your recovery indefinitely.

Hire a replacement?
Only you can determine who would best fill your shoes. But if you’re disabled, you mostly likely won’t be in a position to search for, hire or train a part-time replacement.

Use some of your individual benefits to help pay business expenses?
Possibly. But as individual disability benefits are designed to help meet your personal financial needs if you become disabled, you may not be able to stretch those benefit dollars far enough to cover business expenses as well.

For example: Carol is a floral shop owner. Her gross monthly earnings are $12,000, her monthly business expenses are $8,000 and her take home pay is $4,000. Her individual disability policy will be based on her take home pay. At 60 percent of $4,000, she would receive a $2,400 monthly benefit – not enough to cover even half of her monthly business expenses. And that’s without taking her personal living expenses into account.

Sell your business?
This option may not be viable or profitable. An emergency liquidation sale rarely generates top dollar on your investment. And it leaves you with nothing to come back to when you recover.

Be Prepared

Insuring your ability to keep your business in operation is every bit as important as insuring your life, house or car. You have assets – but the solvency of your business enables you to retain them. No matter how comprehensive your medical coverage may be, not matter how much individual disability insurance you have, it’s important to make sure you’ll have money available to cover monthly expenses for your business if you become disabled.

Business Overhead Expense insurance* from Mutual of Omaha Insurance Company provides benefits to help you cover fixed monthly business expenses if you can’t work due to a covered illness or injury. Expenses like:

• Employee’s salaries
• Rent
• Utilities (heat, electricity, etc.)
• Maintenance
• Taxes
• Interest (not principal) on business loans