insurance

Whether you are newly self-employed or have been doing your own thing for many years, you need to provide a financial safety net should you suffer a health related crisis.

Self-employed individuals and their businesses maintain general liability insurance and insure their vehicles and premises.  These coverages are periodically reviewed and discussed with a general insurance agent.  But are you looking after your security and that of your business and your family?

Business owners must consider how their business and personal obligations will be looked after should there be a serious illness, injury or death.  No one wants to burden their family and employees with a lack of financial resources when their boss can no longer manage the day to day operations.

There are several insurance products that offer cost effective solutions that take care of money matters while you, and perhaps your family members and employees, are looking after your care and maintaining your business.  A few insurance products to consider are:

Disability insurance – to provide a continuing income stream in case of full or partial disability and the inability to work full or part time;

Critical illness insurance – to provide a lump sum payment to cover significant medical costs, or fund expenditures that can no longer be serviced due to reduced income;

Life insurance – to fund future family needs, pay off loans, mortgages, taxes and perhaps fund the cost of a replacement business manager to maintain the business or prepare it for sale.  Life insurance can also be used by business owners to create a tax efficient pool of funds for retirement;

Group insurance – life, disability, health and dental coverage combined into one package for yourself and your employees.  Plans can be structured to be flexible and cost effective.

Insurance can provide many solutions in your business.  It is important to understand and review your needs with a professional who can create a package of coverage that suits your current situation and can be altered as your needs change.  Most importantly, it is always best to get insurance while you are healthy and insurable.  And the younger you are when you purchase it, the less expensive it is.

 

Stan Swartz, CPA, CMA, CFP, CMC is a former partner of Sloan Partners LLP. Stan is continuing his association as a consultant with the firm and is available to review and discuss your insurance, retirement planning and investment needs.

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