Regarding partners in a small business, statistics reveal that the risk of disability is __________ the risk of death.

• A. Less than.
• B. Equal to.
• C. Greater than.
• D. Unknown.

Answer: (C)

The main idea is that disability risk for partners in a small business is higher than the risk of death, especially over a working lifetime. Disabilities can arise from accidents or illnesses and often last a long time, potentially taking a partner out of day-to-day operations for years. Death, while severe, is typically planned for with life insurance and buy-sell funding, whereas disability requires ongoing income protection and contingency planning. Because of that dynamic, the statement that disability risk is greater than death risk aligns with common risk data used in small-business planning. Choices suggesting it’s less than, equal to, or unknown don’t fit this typical planning reality.