As an employer, you face two problems when your employees are disabled. First, prolonged absences can take their toll on productivity and profits. Second, paying salaries or wages to disabled employees from company profits can result in a severe drain on cash flow.

Worse, continuing income payments to a disabled owner or employee without a "sick pay" plan approved by the IRS can create serious tax penalties.

The enclosed booklet describes the problem. The ideal solution is a Salary Continuation Plan — a tax-favored way for your business to pay for individual disability income insurance for selected employees. Sometimes called "sick pay" or "Section 105(d)" arrangements, these IRS-approved plans are the only way to continue a portion of current salary to a disabled employee without triggering a substantial tax impact.

What's more, benefits insured by Ohio National are not a liability to your business or practice. And premiums are a fully tax-deductible business expense.

If this sounds like something you should know more about, I'd be happy to provide additional information. In fact, I will call you soon to arrange a brief, mutually convenient time for us to meet.

Sincerely,