Small business owners often neglect to insure their most valuable asset – themselves.
Small business owners aren’t great at switching off. After all, your business is your baby and you need to tend to it 24/7. But while you’re busy working around the clock, you’re neglecting to insure your most valuable asset – you.
Think about it, what would happen to your business tomorrow, if something happened to you tonight? Even the best-laid plans can come undone by illness, accident or even death, and often with far-reaching consequences for those who depend on us the most, like our family or business partners.
Having life insurance in place is like a safety net for you, your loved ones and the business you’ve worked so hard to grow.
What you need
There are a number of different types of life insurance policies available, but depending on your circumstances you may wish to consider:
- Life insurance: provides either a lump sum or a series of payments for you, your partner, and any dependents if you die or, in some instances, are permanently injured. Business life insurance is also available for SMEs to cover income protection, b-sell insurance, guarantor protection and business expenses insurance. Group life insurance also provides benefits for all employees.
- Total and permanent disability insurance: provides a lump sum if you are totally and permanently disabled before retirement.
- Income protection or disability insurance: covers a portion of your normal income if illness or accident prevents you from working.
- Trauma insurance: provides a lump sum if you’re diagnosed with one of several specific life-threatening illnesses.
Why you need it
Having insurance in place ensures those closest to you can keep going, whether you’re holed up in hospital, or are no longer around. While you know how the business operates like the back of your hand, your family might not and, in the event of your death, will therefore be left to sell up. This can take time and could leave them without an income, forcing them to sell at a discount or during market conditions that make the business less attractive. In some cases, it’s also worth noting the company is worth significantly less without the proprietor or partner at the helm.
what would happen to your business tomorrow, if something happened to you tonight?
If the family home has been used as collateral for a business loan you’ve taken out to start or grow the company, even the roof over your family’s head could be in jeopardy.
Undoubtedly, the staff you’ve grown from the ground up has become like family too, so it’s worth adding their protection to your life insurance mix. Your business may rely on key employees whose deaths would seriously dent your earnings or operations – not something you want to be dealing with when mourning the loss of your friends and colleagues.
It’s morbid, but illness and death is a part of life. You never know what the future may hold so it’s crucial you have a plan in place to protect your nearest and dearest, your business, and yourself. Talk to your Steadfast insurance broker to determine the right type and amount of cover for your circumstances.