You can’t work. Now what? Don’t wait to understand disability insurance structured specifically for business owners and high-net-worth individuals.

Death and taxes are certain. All else can be hard to predict, including a disabling injury or illness. Actuary tables compiled by the Social Security Administration are one of the best ways to measure this risk. Men and women who attained aged 45 in 2024 have, respectively, a 5.2% and 5.6% probability of becoming disabled before reaching retirement age.1

Savvy business owners and high-net-worth individuals manage this risk by regularly collaborating with an insurance advisor to review and adjust their short-term and long-term disability insurance policies. A yearly conversation ensures the best possible safety net, protecting not only income streams, but business, lifestyle, estate, and legacy.

A disability insurance policy review should include these questions:

Has your business grown?
Have your business obligations increased?
Have your financial obligations increased?
Have your risk management objectives changed?
Has Key-Person Disability or Business Overhead Expense protection become necessary?
If you have disability coverage through a professional association, what is the gap between that coverage and the cost of maintaining your lifestyle?
If you were to become disabled, can you take on a different role within your business while you recover?
Have you upgraded your lifestyle or added high-risk activities?
Have you added luxury assets?
Have you increased your personal or community commitments?
Should you consider a comprehensive policy to protect your estate assets from being depleted?
Should you consider a policy that allows payouts to be tax-deferred?

Take the opportunity of an annual conversation with your insurance professional to make sure you fully understand how “disability” is defined, the difference between short-term disability and long-term disability, and if a premium waiver (during a disability, you don’t pay the premiums for disability insurance) is a cost-effective addition. Knowing now, instead of during the oft-chaotic time of disability onset, is another smart way to manage risk.

DISABILITY AND DEATH PROBABILITY TABLES FOR INSURED WORKERS WHO ATTAIN AGE 20 IN 2024 www.ssa.gov/oact/NOTES/ran6/an2024-6.pdf