When you own your own business, you don’t have the security of group insurance that employees have. After several years, you may find that you are drawing a substantial income from a successful venture.

If you become disabled, will your business continue to generate the same profits? If not, how will you meet your financial obligations? When we are independent-minded, we tend to be optimistic, to the degree that we might believe one of the following myths.

Myth #1. I will borrow the money until I get well
The Reality: Few people will lend money to a disabled person. It’s hard enough to borrow money when you’re in perfect health with a steady income.

Myth #2. I will live off my savings.
The Reality: How long would your savings last? Using up your savings at an age when you ought to add to your investments will likely ruin your retirement plans.

Myth #3. I will sell off some or all of my business assets.
The Reality: How many assets does your business own that are not required for its successful operation? Who will pay fair market value to one perceived as liquidating out of a dire need for cash?

Myth #4. My business will pay me a salary.
The Reality: Your partners may need to hire someone to fulfill your responsibilities. Flip the perspective around. If your partner became disabled, how long could you keep paying him or her a salary in addition to the salary for the replacement? If you are a sole proprietor, and disabled to the degree you cannot work, how could you hire and train someone to work hard enough to produce his own salary and yours?

Business Owner Disability Insurance Check List:

	Critical Illness Insurance. Pays you a large, tax-free, lump sum if you get diagnosed with 1 of 22 critical illnesses…or all of your premiums back to you if you stay healthy.
	Long Term Disability Insurance. Pays you a monthly, tax-free cheque that covers up to 2/3rds of the income you draw from the company in case of any disability.
	Key-Person Insurance. Pays a benefit to enable the business to hire a replacement.
	Office Overhead Insurance. Helps you pay for day-to-day overhead and salaries.
	Buy-Sell Insurance. Creates the cash to allow your partners to buy out your interest, or vice versa, based on a written agreement.