If you are the business owner and you become sick, how are you, or the business for that matter, going to be able to pay for that? Typically, a business owner is needed in their business in order for it to function. When a business owner becomes sick the business suffers. Many business owners never think about this until it is too late. Just like most insurance programs, we cannot buy it after the fact.
Owners typically sit with their accountant, lawyer and people they trust and they work up business plans, goals, and the like to keep their business profitable. On the personal side, they may even do some financial planning and protection with a will or even a trust. Beyond that, the focus is on profits.
There is nothing wrong with focusing on profits. After all, isn't that the reason we all go into business? However, if the owner doesn't plan on protecting the asset they built, they will have a hard time focusing on profits in the event they become seriously ill. The focus will turn to keeping the business afloat until they are better. The unfortunate thing is illness does not discriminate. You could be the next business on the front page of the newspaper talking about closing their doors due to a serious illness.
Planning to protect your family and business in the event a business owner becomes seriously ill isn't that difficult. In fact, with the right insurance agent, the agent will take care of all the details for the business owner and give them a path towards the right amount of protection. Having the right amount of protection, when you need the most, out weighs the time and effort in pursuing this type of protection. It really comes down to the question is it worth the small investment to come out ahead versus ignoring it and possibly going bankrupt personally as well as professionally. Try rebuilding after everything you worked hard for has collapsed after a serious illness. It is not as easy as one may think.
It can be viewed as selfishness if a business owner ignores reviewing this type of coverage for themselves and their businesses in the eyes of their customers, friends and family. It's not the customers, friends or family members fault if the business owner has to make changes to their product or business that they originally liked, such as pricing or benefits of a product, or even close your doors because you are too sick to keep up on happy customers.
A business owner that takes action could be in a position to replace his or her income in the event they are seriously ill. This will give the business the opportunity to replace the owner while they are recovering. Maybe the business owner will decide it's time to retire while the business still continues on without suffering with the loss of their expertise. The important thing here is the business owner can focus on become well again and to customers can still take advantage of a competitive strong business that continues to provide value.
The income replacement can be done with several different insurance products for asset protection, depending on the business and person. Not everyone can qualify, but if you do, it can be emotionally as well as financially rewarding in the event the business owner actually has to use the benefit. Disability insurance can be hard to qualify for a business owner for several reasons. Some life insurance policies have accelerated living benefits attached to the policy at no extra cost. This is a benefit that allows you access to cash when you have a qualifying event. This can be on a Term Life, Whole Life or Universal Life contract, depending on the insurance company. Some of them may allow you to add on a disability rider for benefits up to age 65, for accidents as well as illnesses, or a waiver of premium during the qualifying time period. Not all benefits are attainable or available with all products. Seek professional advice on such products.
Butch Zemar
www.EliteBenefits.net