1. Keep Your Business Sailing Smoothly
Today I’d like to talk about you and your business. You’ve invested a great deal of time, energy , and money into it.
For people like you, it’s not just a business. It represents your life’s work.
And you want to see that business keep running smoothly.
RECOMMENDED MATERIALS BELOW:
Keep Your Business Sailing Smoothly (Pub5743BL): client-facing brochure that discusses DI protection for the business owner personally, for the business, and for employees.
Business Owner Market Opportunity Blueprint (Pub6473BL): producer facing flyer that provides the Who, What, Where, and How with regards to targeting business owners.
Keep Your Business Sailing Smoothly

2. Your income Your business What Makes Your Lifestyle Possible?
In the Short Term:
Your income
Your business
What would happen if you became too sick or injured to work?
As a business or practice owner, you’ve become accustomed to a certain lifestyle. But what makes that lifestyle possible?
Your income – Let’s face it -- It’s the foundation of the life you’ve created.
And your business is responsible for that income.
But what would happen to your lifestyle if you became too sick or injured to work?
And before you say that won’t happen to you, let’s look at the facts.

3. It Can Happen to You
1 in 4 of today’s 20 year-olds will become disabled before they retire.*
*U.S. Social Security Administration Fact Sheet, February 7, 2013.
**Council for Disability Awareness 2014 Long-Term Disability Claims Review.
The Majority of Disabilities Are Caused by Illnesses.**
Did you know that 1 out of 4 of today’s 20-year olds will become disabled before they retire. And such a disabling illness or injury can have serious consequences for your life and future.
And when you think about the causes of disability, your first thought may be freak accident. If so, you’re not alone. Many people think that, but in fact 90% of disabilities are caused by illnesses, with only 10% a result of accidents. Illnesses such as back problems, cancer, heart disease, and mental illness actually cause the majority of disabilities.
One of the most effective ways to protect your income is with disability income insurance. Let’s take a quick look at how DI insurance works,

4. Ask Yourself: If a Disability Struck
How would my personal lifestyle be affected?
How would I pay day-to-day expenses?
What would happen to my longer term
plans such as saving for college,
retirement, etc.
How would my business fare?
Without me, who would provide the
services?
How would the business pay everyday
expenses?
In the event of a disability, you’d need to start asking yourself questions like:
- What would happen to my current lifestyle?
- Would I be able to meet my routine living expenses with my savings or spouse’s income? And what about the ramifications for my long term plans like saving for college for my children, retirement, and so forth?
Plus, as a business owner, your business would feel a dramatic impact if you became disabled. Who would provide the services you usually do? How would the business’ everyday expenses get paid?

5. Disability Insurance for Personal Income Replacement
Personal Disability Income Insurance
Protects your personal income
Helps you continue paying everyday expenses
Groceries, auto, utilities, housing, etc.
Choice of definitions of disability
True own-occupation
Modified own occupation
Key Features to Look for:
Waiver of elimination period
Personal Disability Income Insurance offers great protection for your personal income. In the event of a disability, it provides income replacement to help with the day-to-day expenses – things like food, rent or mortgage, utilities, and so forth.
When looking for personal disability income coverage, you’ll want to look at whether or not a plan offers you choices so that you can tailor that coverage to your unique needs and circumstances.
You’ll want to look at how disability is defined, as that is a key factor in determining eligibility for benefits.
If you suffered a disability and then had a relapse or perhaps suffered a different disability, would your policy impose the same waiting period, or is there a provision to waive that?
Does the policy waive premiums during a period of disability and possibly for some period afterwards?
Disabilities can last many years – Does the policy offer any option to offset the effects of inflation?
And what about benefits after the policy is over or perhaps you retire – Are there any benefits to help you offset some of the effects of a disability during your prime working years?
Waiver of premium benefit
Benefits for partial disability
Facilitates physical and financial recovery
Options to mitigate some effects of inflation
Possibility for benefits after the contract ends

6. Protection for Your Business or Practice
Overhead Expense Insurance
Helps your business continue paying
everyday expenses
Rent
Utilities
Payroll
Helps your business continue making payments on business loans
Equipment lease or purchase
Practice or business purchase
Business start-up
Insurance Specifically for
Business Loans
And you’ll want to make sure your business is protect in case you or a co-owner became disabled.
You’d need Overhead Expense insurance to make sure that the routine expenses of the business get paid – Things like the rent or mortgage, payroll, utilities, and so forth don’t go away just because an owner is disabled.
Perhaps you took out a business loan to buy your current practice or business. Or maybe you’re leasing or buying an expensive piece of equipment. There’s coverage available to make sure that those loan payments continue in the event of an owner’s disability.

7. Disability Buy-Out Protection
Funds the purchase of a disabled owner’s portion of the business
Disabled Owner’s Concerns
How can I recover my investment?
Why should I let others run my
business, using my money?
Remaining Owners’ Concerns
With an owner not working how
will all of the work get done?
Would the disabled owner’s
spouse or children want a say in
running the business?
Will the disabled partner sell his or
her interest to a competitor?
If you have co-owners, then you may have made provisions in the event one of you were to die. But did you know that during the course of your career, you’re three and a half times more likely to be injured and need disability coverage than you are to die and need life insurance?
(FYI only– See source below)
So, it’s important to make sure you’ve got a plan in place in the event you or one of your co-owners became disabled. Such a situation would surely give rise to questions for the disabled co-owner around recovering your investment. And for the remaining partners, there might be worries that a family member might try to take the place of a disabled co-owner in running the business, or perhaps the disabled co-owner would consider selling his or her share to the competition.
You can circumvent many of these concerns by having coverage already in place to fund the purchase of a disabled owner’s share of the business.
SOURCE:
Statistical information derived from: the Society of Actuaries, the National Safety Council, the Million Dollar Round Table, the National Underwriter-May 2002, The JHA Disability Fact Book -2003/2004 Edition - Need For Disability Insurance

8. Disability Protection for Your Employees
Disability Protection Programs
That Enable You to
Reward key employees
Protect employees and
take a tax deduction for the business
Provide employer-sponsored coverage
for a group of employees
Protect employee and employer
retirement plan contributions
For many business owners, employees are like family. So you’ll want to take a look at options to provide them with disability protection as well.
There are a lot of programs for employees that can help you offer disability coverage and achieve other objectives as well.
For example, you can provide disability protection for key employees as a reward. Or perhaps you’d prefer a broader program for all employees. And you may want to look at possibilities for providing coverage while also taking a tax deduction for your business.
Plus, there are programs that can help protect both the employer and employee retirement plan contributions during a disability.
You’ll be able to decide how such programs should be funded – by your business, by the employees, or perhaps some combination of the two.
You can decide whether premiums would be:
Employer-paid
Employee-paid
Combination

9. Next Steps
Think about which types of disability protection you need for
Yourself
Your business
Your employees
Talk with your co-owners.
Contact your insurance advisor.
So, what next?
Now that you’ve learned a little more about how disability protection can safeguard you, your business, and your employees, think about the types of protection you might need.
And if you have partners, talk with them now to make sure you have a plan in place just in case.
And contact your Guardian representative, who can help you develop a disability coverage plan that’s just right for you and your business.
Thanks for joining us. today.

10. This presentation is provided for informational purposes only and should not be considered tax or legal advice. Your client should contact their tax or legal advisor regarding the tax treatment of the policy and policy benefits. Your client should consult with their own independent tax and legal advisors regarding their particular set of acts and circumstances. The information provided is not intended or written to be used, and cannot be relied upon, to avoid penalties imposed under the Internal Revenue Code or state and local tax law provisions.
Disability insurance Policy Forms 1400, 1500 or 1600 underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. Product provisions and availability may vary by state. This policy provides disability insurance only. It does not provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department. For policy forms 1400, 1500, or 1600, the expected benefit ratio is 50% (including NY 1400). For policy forms 1400-F, 1500-F, or 1600 F, the expected benefit ratio is 60% (NY only). The expected benefit ratio is the portion of future premiums that the company expects to return as benefits, when averaged over all people with these policy forms respectively.
Policy Form 4200 underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. This policy provides disability insurance only. It does not provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department. The expected benefit ratio for this policy is50%. This ratio is the portion of future premiums that the company expects to return as benefits, when averaged over all people with this policy.
Policy Form 3100 or 3200 underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. This policy provides disability buy-out insurance only. It does not provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department. The expected benefit ratio for this policy is 55%. This ratio is the portion of future premiums that the company expects to return as benefits, when averaged over all people with this policy.
Policy Form AH55-A provided by The Guardian Life Insurance Company of America, New York, NY.
Product availability, provisions, and features may vary from state to state.
The Guardian Life Insurance Company of America 7 Hanover Square, New York, NY
Pub5743BL-PPT (08/14)
(Exp. 08/16)