With a mortgage, vacation properties, plus other expenses that could include multiple vehicles loans or kids in college, your financial needs may be greater than entry-level employees.
Plus, small business owners, sole proprietors, and professionals like doctors and lawyers who run a practice need to keep up with business expenses – even if they can’t run the business.
Will your short-term disability insurance in New Jersey cover those needs if you are unable to work? And is your life insurance policy adequate to maintain your family’s standard of living if you die? What if you need long-term care in an assisted living facility? These are questions New Jersey business owners should be thinking about now.
Especially in a down stock market with rising interest rates, you don’t want to be in a position of borrowing against your 401(k) or cashing out other investments if you or your family needs money for living expenses.
But the maximum TDB coverage in New Jersey, even though it’s amongst the best programs in the country, is unlikely to pay for your needs to maintain your standard of living – especially if you also face medical bills and co-pays as a result of your accident or injury.
If you are concerned about your financial future if you become ill, injured or unable to work, it may be time to consider executive carve-outs for life insurance and short-term disability coverage. This insurance product offers your key employees, high-earners, executives and yourself enhanced benefits, fully funded by the employer. You may realize certain tax advantages by funding these benefits for yourself and your executive team.
If you’d like to offer enhanced coverage to your executive employees – and take advantage of it yourself – you might also consider buy-up coverage. Buy-up coverage enhances life insurance and disability insurance beyond the maximum policy limits on a voluntary basis. The coverage is fully funded by the employee.
The U.S. currently has more than 800,000 assisted living residents, and roughly 70% of people ages 65+ are likely to need some type of long-term care in their lifetime. Studies show that the average adult will receive long-term care for three years.
Costs for long-term care and assisted living vary widely based on the type of facility, care required, and the region or neighborhood. In New Jersey, an assisted living facility costs residents an average of $6,495 per month, while a semi-private room in a nursing home costs an average of $11,254 per month, while a private room costs $12,151, according to statistics from Genworth.com.
Long-term care insurance can help your family keep their emergency savings and investments and maintain their lifestyle even if you need long-term care. You can also offer this benefit to high-earning employees.
Accident insurance and hospital coverage are other benefits that can help you pay the bills if you can’t work for an extended period of time. You might find these benefits to be extremely affordable, especially if you bundle them with other ancillary benefits, like dental and vision.
Finally, once you have the peace-of-mind that your needs and your family’s needs will be taken care of if something happens and you can’t bring in an income, you’ll want the same security for your business. Key person insurance is another executive-level benefit you may want to consider. This benefit covers business expenses if you can’t run your business due to illness or injury. It can also be part of an exit strategy if you’d like the business to continue after your death.
A professional, licensed insurance broker like the team at EZTDB can help you find the right benefits package for you and the key executives in your New Jersey business. You don’t have to rely on New Jersey state disability insurance alone with so many ancillary benefits options available.
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