The Business Implications of Disability Insurance


The Business Implications of Disability Insurance

[youtube][/youtube]Dr. Szatkowski was a prosperous, successful member of a Tarzana dental practice until he was diagnosed with amyotrophic lateral sclerosis (ALS) and was forced to retire in 2002. His story is related by his wife of 35 years, his practice partners and his insurance agent as Frank is now in a wheelchair and requires a ventilator to breath. An overhead disability practice purchased by the practice paid Frank’s third of the office expense. A disability buyout contract delivered a lump sum payment to the corporation, allowing his partners to purchase Frank’s share of the practice without personal or corporate financial stress. A personal disability insurance contract helps the family to maintain their st andard of living while caring for Frank at home with the assistance of around-the-clock care.

Brad Cundard’s Tragedies as the Key Man

[youtube][/youtube]Brad Cunard and his wife were college sweethearts and the parents of two tiny boys. They were partners in work, too, owning half a business with two other long-time friends and colleagues in their business, Kudzu, that employed over 130 people. In addition to whole life insurance policies purchased when they married, the four partners of Kudzu purchased including life Key Man Life Insurance for each individual’s role in the business. When tragedy hit Brad’s life, it was with the speed and devastation of a Benedict Canyon wildfire and left nothing for him but ashes. Lisa and their two sons were killed in a freak accident when a tree fell on the back of the Cunard’s car on their way home. Further, Lisa was not only president of the company, but the only graphic artist among the partners. Without the Key Man policies, Kudzu might easily have failed with Lisa’s death and Brad’s extended period of grief.



A Company Left Without Its Key Salesman

[youtube][/youtube]Jeff Fink — a self-admitted “gear head” who would have love Southern California if only for its freeway system — and his partner Ken Howell purchased Auto Custom Carpets in for after market sales in 1975. At that time, the business was in the black but with the care and attention of Jeff and Ken, the company began to thrive and employed over 220 individuals. With the advent of the business’ success, the two partners sought “sales insurance” or key person life insurance so that each could replace the other in the event of injury or death. After Jeff’s death in a plane crash, Ken was able to use the key insurance to find, interview, relocate and have a new salesman working within a month of the accident.