May is Disability Insurance Awareness Month, and for most business owners, it raises a question they've never fully answered: what happens to your business — and your family — if you can't work?
Most business owners spend years building something valuable. They insure their building, their equipment, their vehicles, and their employees. But the one asset that makes all of it possible — their own income — often goes unprotected.
That's a gap worth closing.
The Risk Is More Common Than You Think
According to the Social Security Administration, more than one in four workers will experience a disability that keeps them out of work for 90 days or longer before they reach retirement age. For business owners, that's not just a personal crisis — it's a business crisis.
Without income, the questions come fast: Who covers payroll? Who services the debt? Who keeps the doors open? Disability insurance exists to answer those questions before they become emergencies.
What Disability Insurance Actually Does
Disability insurance replaces a portion of your income — typically 60 to 70 percent — if an illness or injury prevents you from working. Unlike life insurance, which protects your family after you're gone, disability insurance protects you while you're still here.
For business owners, there are two types worth understanding:
Personal disability insurance replaces your individual income if you can't work. It pays you directly, regardless of what happens to the business.
Business overhead expense (BOE) insurance covers your fixed business expenses — rent, utilities, employee salaries — while you're unable to work. It keeps the lights on while you recover.
Most business owners need both.
The Time Factor
Here's what most people don't consider: a disability doesn't have to be permanent to be devastating. Even a six-month gap in income — with no coverage in place — can wipe out years of savings, force you to sell assets, or permanently damage a business you've spent decades building.
Time is your most valuable asset. And the longer you wait to protect your income, the more expensive that protection becomes. Disability insurance premiums increase with age and health changes. The best time to get covered is before you need it.
What Business Owners Should Do This Month
Start by asking yourself three questions: How long could you sustain your lifestyle and your business without your income? Do you have a plan if that runway runs out? And when did you last review your coverage — or lack of it?
If you don't have clear answers, that's exactly where a conversation with a financial advisor can help. Disability insurance is not one-size-fits-all. The right policy depends on your income, your business structure, your existing benefits, and your personal situation.
May is a good month to have that conversation. Don't let Disability Insurance Awareness Month pass without taking a hard look at the one risk most business owners are still ignoring.
To learn more about income protection strategies, contact Tempus Wealth Management at (954) 663-4377 or visit tempuswealthmanagement.com.
This post is for educational purposes only and does not constitute investment, tax, or legal advice. Please consult a qualified professional regarding your individual circumstances.