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How Disability Insurance Can Hedge Small Business Owner Risks

How can disability insurance help hedge small business owner risks by covering employees?

Most employers don’t want to cut someone off from their paycheck while battling cancer or recovering from a traumatic accident.

So they outsource it.

This is the invisible “employer benefit” of Group LTD and GSI.

An employer can outsource the decision (and the financial exposure) to keep a valued employee on payroll when that employee needs time to recover from a serious illness or injury.

Read that again. It’s truly amazing how this coverage transcends a spreadsheet!

Most employers don’t want to cut someone off from their paycheck—but in most cases, they just have no choice.

They cannot legally rationalize the balance sheet by keeping someone on payroll who is doing no work for the company.

(Without a written agreement that’s called an “ad hoc” payment and there’s good case law indicating this is illegal.)

So the question is how do you make this tough decision as an employer?

Answer: You outsource it.

Employers with group disability no longer have to face the decision to cut off their employee’s livelihood when they are going through the most difficult times of their lives.

This is especially impactful for small businesses where employees are like family.

Did we mention… It’s guarantee issue. No medical or financial underwriting at time of enrollment.

We would love to collaborate if this is a solution you want to bring to your small business owner clients!


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