Disability Insurance for Mature Business Owners
The trend of pushing the age of retirement back a few years is on the rise. Americans are living longer, and therefore needing to work longer. Wealth accumulation periods have increased due to the need for longer-term financial sustainability, as we are regularly seeing entrepreneurs undertaking new business ventures well into their sixties.
The vast Baby Boomer demographic has reached that pinnacle as well, and an obvious expansion in the direction of a more mature, aged workforce has become evident in the disability insurance market. Few traditional DI carriers have responded appropriately in the personal disability insurance sector, providing benefits now and then to clients in their sixties. These few insurers should be congratulated for shunning the usually accepted, but antiquated methodology of phasing-out disability insurance programs for those over the age of 59. Yet almost all carriers have fallen quite short when it comes to the prospect of business disability insurance.
Although many corporate buy-out situations involve older business owners, a common discrepancy arises when trying to acquire suitable buy/sell disability insurance for those older clients. Many buy/sell carriers enact a declining-benefit policy provision for those nearing traditional retirement years. Yet, Petersen International has the unique ability to accept more risk and exposure than most U.S. insurers, and allow insured persons coverage on 100% of their ownership value well into their sixties and beyond.
Another problematic product is key person disability insurance. Key person coverage is difficult to come by even for more youthful prospects, let alone senior-aged clientele. But over the last three decades, Petersen International has developed into the country’s foremost key person disability insurance underwriting firm, and in turn is able to write comprehensive, high-limit benefits for key employees and business owners over the age of 60.
Similar to that common key person insurance dilemma, business overhead expense (BOE) plans can also prove to be a difficult find for business owners nearing retirement. In response, Petersen International has employed creative underwriting strategies and risk analysis to forego usual age limitations and allow seasoned business owners to purchase renewable BOE policies while over the age of 60.
The American workforce is aging, and until more carriers are able and willing to keep up with the needs and demands of those approaching the traditional period of retirement, Petersen International Underwriters will clearly remain the preeminent provider of business disability products for insurance professionals seeking protection for mature business owners.