Income protection for business owners
Small business owners do not think twice when it comes to insuring premises, employees or equipment, but when their own income is at stake, 90 per cent are completely unprotected.
If the worst should happen, the consequences of not having income protection insurance in place can be dire. Typically, business owners will have a mortgage to repay along with living costs and day-to-day expenses. These are costs that can escalate without income protection insurance in place and quickly become unmanageable.
According to recent research, the likelihood of becoming critically ill before the age of 70 is 59 per cent for men and 42 per cent for women. With the threat of heart attacks, cancer and strokes ever-present, it is essential to plan for the future and make provisions to protect against the financial hardships which can result, particularly for small business owners.
Without income protection cover in place, business owners may find themselves in a position where they are unable to pay not only their mortgage and living costs, but also the costs of a carer or their child’s ongoing education.
There are also costs associated with the business, as, without income protection in place, the owner may have to pay a replacement’s salary to keep the business running. This is a cost which can become a serious burden for the business owner and their family.
Income protection insurance provides financial assurance and the peace of mind that comes with securing the financial future of your family. This cover ensures that, should a business owner be unable to work for an extended period of time due to either an accident or serious illness, they still receive a monthly income.
As well as ensuring day-to-day costs and mortgage repayments are met, the money can also be used to cover the cost of somebody else’s salary, ensuring the business is in safe hands while a full recovery is made, without the business incurring additional costs.