With so many demands on your time, running a business can seem like an endless job. But you also have to make sure your personal financial needs are met. This becomes even more important when your personal needs overlap with the needs of your business.
Just as you plan for risk management as part of your business cycle, so too should you include risk management as part of your personal needs in the personal planning cycle.
In risk management, the foundation of the personal financial pyramid, you begin by protecting that which is most important to you and the least you can afford to lose.
Depending upon your circumstances, this may be secured through disability insurance, life insurance or long-term care insurance.
Would your business stop running or suffer financially if you couldn’t work?
There a various types of disability insurance to consider:
Disability Income Insurance
Replaces a portion of personal earned income lost due to a total or partial disability.
Disability Overhead Expense coverage
Provide a monthly benefit for covered overhead expenses when a business owner is partially or totally disabled.
Key-Person Disability coverage provides a benefit to the business in the event the key employee is disabled. There is no one more key to the success of your business than you.
Disability Buy-Out Coverage
Disability Buy-Out Coverage helps fund a disability buy-out agreement with installment or lump-sum payments.
What role should life insurance play in helping you build a solid financial foundation? Having a better understanding of your overall financial situation is a key step in determining what type(s) of life insurance would best meet your needs and those of your business.
Proper risk management is essential to securing your financial future. Insurance is an integral part of establishing a safety net, should something unforeseen occur. It provides protection against life events that could significantly impact your financial well being.