THE LIKELIHOOD OF AT LEAST ONE LONG TERM DISABILITY OCCURRING WITHIN A GROUP OF BUSINESS OWNERS

For example, three business partners age 38, 40 and 42 (average age of 40) have a likelihood of 45% that at least one will suffer a long term disability within the next 25 years.

This emphasizes the need for disability income replacement as well as disability provisions (perhaps insured) in a business buy-out agreement.

(These statistics were calculated from the Society of Actuaries’ DTS Experience Table – Male – Class 1 experience. Statistics would not vary much if some of the group were women.)