Small Business Owners
Key Person Insurance
In a small business, there are usually a few people that is the core of the business. These are the people that generate most of the ideas and energy. This is usually the owner, the founders or perhaps a key employee or two. What would happen to the business if any one of these people were not to be able to participate either through a disability or sudden death. Not pleasant to think about but either of these two circumstances could devastate a company that many are counting on to be able to continue. Key person insurance protects against these risks. The key to this type of insurance is to get the protection as inexpensively as possible. How this works is the company pays the premium for the key employee. If that person unexpectedly dies, the company receive the insurance payout that will allow the company to function while the company makes the adjustment either by restructuring to hiring another key person with similar skill.
Disability Insurance
What would you do if you are a key worker were not able to perform their work? Both the company and the individual would suffer the consequences. You don't hear much talk about people that have suffered due to a temporary disability. However, if it did occur it could be devastating. There are many types of disability insurance. There is enough flexibility that you usually can customize it to your needs while keeping the cost down to a minimum. Whether you need a short term disability policies or prefer longer term protection, disability insurance offers a worker a portion of their salary if they are unable to work after an elimination period has been met.
Small Business Retirement Plan
Besides the equity you develop in your business, your retirement plan is likely to be a significant portion of your wealth accumulation. However, most small business retirement plans are not up to taking advantage of the increasing opportunity investors have moving forward. We specialize in small business retirement plans from the most simple to the most sophisticated and complex. We consult with you to find the best way to reward yourself as well as retain highly valued employees.
Most of us think that nothing will ever happen to us. But, unfortunately if something unforeseen did happen usually will impact others that we care about or are counting on us to provide financial security. These circumstance are difficult for us to think about but are very real. That is why at the very least one should carry some type of term insurance. Term insurance is the least expensive coverage you can get. However, not all term policies are the same. That is why it is a good idea to speak with someone that is independent, meaning not tied to any one company. But has access to several companies. An independent agent can give to you plusses and minuses of the various companies and policies available.
Insurance is useful to manage the risk of low frequency but potentially high impact events. For a small business owner this could be the death or disability of a key person. Imagine how much you rely on a key person in your business whether it is yourself or a highly valued employee. What would be the cost to your business if that person were suddenly unavailable to work due to death or disability. Although we don’t like to think about these things occurring, these are real risks that are present. To protect from these risk as inexpensively as possible is where term insurance may be the best choice. The advantage of term insurance is the low cost. The disadvantage to term insurance is that by the time it expires it may be prohibitively expensive to replace. To get the best of both worlds between term and permanent insurance it can be an effective strategy to layer them both depending on your needs. What many people do is purchase cheap insurance online not realizing there are some provisions that may not be available in purchasing insurance in this way such as conversion provisions. Even something as seemingly simple as term insurance my need more to be considered to be what is right for you.