Income Insurance

Discussion in 'Lawn Mowing' started by fitzg2md, Aug 27, 2007.

  1. fitzg2md

    fitzg2md LawnSite Member
    Posts: 156

    Does anyone use any type of income insurance? Mainly for solo ops, and small companies. For instance, if you hurt yourself and lose the ability to work for a few months it pays you out a certian amount each month. Obviously, you would have to worry about taking care of accounts, but I would guess this would help with the added expense of hiring someone to do it all.

    does anyone use something like this? If so, around how much do you pay, and what are your thoughts? Has anyone ever made a claim on something like this? (PS - Weather is supposed to be in the 80s the rest of this week in VA...finally!)
     
  2. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Posts: 11,062

    Yes, I do.

    It's called disability income insurance.
    Mine is a short term disabilty/long term disability wrapped into one.
    It also covers me at work, and otherwise.

    Those are important points.

    Yes, I have had to file a claim on it before also.
    I had a slip and fall accident (not while mowing, etc) a few years ago.
    Took me down for the count for a while.
    There was no way I could carry out the duties of my profession.

    I filed a claim, they paid me, I subbed out work, and everything went over smooth as glass.

    Rates are individual depending on the person and profession.... and coverage amounts vary as well. So it's pointless to tell you what I pay.

    The best thing to do is to find a really good trustworthy agent/broker who will take the time to drop by, explain all the in's/out's of the insurance to the point you understand it... AND take your information and "fish" all his providers for rates.

    I used to do this for a living, and that's how I did it.

    In any event, finding a good person to explain the plans and set one up for you is key... as if you are not careful, you might buy a cheap plan, and then find out why it is cheap when you need it.

    The next thing I'll say is the same thing I told all my investment/insurance clients...

    It's funny how people will insure everything under the sun to the hilt... full coverage on the house, collision comp on all the cars, insurance on the toys, insurance on the business and business equipment... and the list goes on and on............... but people consistantly fail to insure their single greatest asset they have........ their ability to earn a living..... and if you don't believe that is true, take what you make a year now and multiply it by the number of years you have left before retirement.......

    If you work for a living, the only ways to insure your greatest asset (your ability to earn) is to have a solid disability income policy to cover disability, and a life insurance policy to cover in the event of death.

    If you don't have these things in place, you are really gambling for a living.
    Should the cards not fall your way some day (which is likely) you'll suffer the loss, and if you have a family they will suffer the loss as well.
     
  3. DuraCutter

    DuraCutter LawnSite Senior Member
    Posts: 806

    Envy explained it well. Another form of insurance is having lots of employees.
    I'll often spend days not doing much work, just supervising. If I was hurt, I could do that indefinitely.

    Most solo operators have their hands full just mowing, other things are left behind due to the rigorous physical demands...

    :)
     
  4. fitzg2md

    fitzg2md LawnSite Member
    Posts: 156

    Thanks guys. I was considering getting it, as I can easily see an injury putting me behind a great deal...or worse. Its difficult for me to spend money on things like life insurance, disability insurance, etc because I have no one to support but myself. And I am only in my mid-twenties, so I have a serious case of the "live-forevers". Gotta be realistic though...

    Now to find a good broker...
     
  5. Americal Vet

    Americal Vet LawnSite Senior Member
    Posts: 250

    Disability insurance is a must if you have nothing else to fall back on. I've got my Army retirement and benefits but I have some friends that did not have any type of insurance. A motorcycle accident has just about wiped him out.
     
  6. naturescape

    naturescape LawnSite Bronze Member
    Posts: 1,695

    I'd be interested in hearing what you guys are paying for it, even if it does vary a huge amount........... I applied twice and was turned down because of my profession, so I'd like to get some examples. And what companies are you insured with?
     
  7. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Posts: 11,062

    Not having a family yet does make it seem less 'urgent'.

    I understand that and really respect your maturity on getting covered.

    Being realistic, even though you are young, you are your own responsibility now. It's realistic that you could have something happen to put you out of work. Even if you have employees in the future... being realistic, your business still needs you, or someone to take your place should something happen. Plus, since you are your own responsibility now, if you were to get injured, you still want to be self-sufficient with income coming in. That's why I say I respect your maturity... getting disability insurance means you don't have to rely on family or whatever to come to your financial aid.

    Same thing with life insurance. Even with no family of your own yet, things happen to young folks every day. With life insurance, your family won't inheirit your debt and then have to go in debt further to take care of services should something happen.

    Now I am going to get up on my milk crate and preach something...

    When it comes to life insurance, there is no excuse for any healthy young person to risk leaving their parents in that position. All young people have the "live forevers" and many let the prime time to buy pass them right by.

    But like I said, no excuse, because good permenant life insurance is dirt cheap for young health folks, even in huge benefit amounts. Buy a great big policy while you are young and can get it, and buy something permenant/fixed to lock in that low premium and forget about it. So then you have the policy in place for life at a low cost and enough coverage even to cover you in a family situation where you have a spouse, children, mortgage, etc, etc... Heck, some policies even have things you can add for guaranteed insurability should you need more coverage later in life...

    I've been out of the business for years now. But I can't tell you how many hundreds of people have called me... they still do call me at home until this day... wanting to buy life insurance and disability insurance. Sad part is that 99% of INCOMING calls for those products are futile. Usually life has shocked them into reality... they lost the "live forevers"... and now they want to get covered. But now their health is serious, or they are already injured, even some with terminal illness, or folks with family in the hospital in serious condition. It hurts me to tell them that this is like calling Nationwide to buy fire insurance while the house is on fire.

    Disability companies won't touch someone who is already injured, in bad health or extremely high risk. For those seeking life insurance, I usually offer them a couple referrals... the funeral home plans and the guaranteed issue "graded life" people who write policies that start at like $1,000 and grade up over a long period and cost way more than most people can afford.

    So buying insurance is something mature to do and smart to do financially while you are young and healthy.

    I'm glad you are wise enough to see this in your mid-twenties.... good for you.
     
  8. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Posts: 11,062

    I forgot to mention that a lot of the better, higher end life insurance companies has high quality life insurance policies that have every available "RIDER" there is that you can add to the plan.

    You can often purchase a quality life product like this and 'add riders' for additional coverage at a GREATLY REDUCED EXPENSE. Like for instance, you could add a 'disability income rider' to your life policy for a small increase, and a great many have 'accident riders' that are very low cost and will pay a large one-time benefit for extreme accidents/permanent disability accidents/accidental death,

    Look at the prominent companies, and their sub-companies.
    (The big ones don't buy the smaller fish for nothing)
     
  9. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    My short term disability is through Combined Insurance.

    It'll pay max benefits of up to $3000 / month for 6 months.

    I figure this way if I was taken down for that long, that it would have given me enough time to sell enough of the bits and pieces that I no longer need, or at least help out on the bills anyways.

    I pay about $300 / year.

    I also have an accident policy with the same company that I pay $50 / month with, where they will cover all hospital visits up to $5,000, office calls up to $200 / visit and dentist visits.
     
  10. TSG

    TSG LawnSite Senior Member
    Posts: 444

    You can also take a look into Business Overhead insurance.
    It won't cover your income, but will cover monthly expenses.
    BOH insurance is less expensive than income insurance and a good place to start.
    When looking for income protection, read the fine print.
    The two types of income protection :
    1: covers insures against loss of income
    2:covers your ability to do your occupation
    # 2 is more expensive
    # 1 can have holes in the protection.
    Deal with a quality BROKER
    or an agent that specializes in DI

    Just .02

    Alan (Broker in a past life)
     

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