In the new world of automation and ai, there is one key part of your real estate business that cannot be replaced: YOU!
As a broker or agent, your income depends on your ability to drive to listings, walk through inspections, and the occasional afternoon spent in a crawl space.
So what happens if an injury or illness prevents you from doing these things? Revenue stops. That’s where disability insurance comes in.
Types of Disability Insurance
Not all policies are created equal. The main thing to be looking for when purchasing a disability insurance policy is the definition of disability itself.
- Any Occupation: This is the basic version where the insurance company ony pays if you cannot work any job at all. If you can’t walk a 500,000 sq ft warehouse, but you could technically answer phones in a call center, you’re not getting paid. This type of policy is most beneficial to the insurance company, meaning it’s also the cheapest.
- Own Occupation: This is the golden goose. It defines disability as the inability to perform the material duties of your specific job. This is obviously more beneficial to you, the insured, so it will be pricier. However, this is what you’re after.
You Need More Than Total Disability
You might suffer an injury that prevents you from physically showing properties but can still grind away at your desk. This limitation could lead to a drop in income.
- Residual / Partial Disability Rider: Standard policies mostly require you to be 100% disables to collect. With a residual rider, you can claim a supplemental benefit in the scenario above, for example. This protects against an illness or injury that might limit your hours or abilites resulting in a significant drop to your income.
- Business Overhead Epense: In most cases, unless you are truly a solo shop, your expenses don’t stop when you’re not working. Rent, leads, payroll, etc. A BOE policy helps pay for these specific business expenses to make sure the lights stay on while you’re out.
What Now?
Ask yourself: What happens if my ability to show properties vanishes tomorrow? Would my lifestyle be sustainable? Would my business survive? If you want to get super heavy, will I be able to put food on the table for my family?
If the answer is no, it might be time to think about getting some disability insurance. After all, insurance is just a hedge against the worst case scenario and you never need it . . . until you do.