For many small business owners, when it comes to protection, the focus is often on the company and not the founder. But such an approach risks leaving the small business owner vulnerable should they become seriously ill or injured. Without them at the helm, how would the business inevitably fare and for how long?
That’s why income protection for small businesses is absolutely something that should be considered if the business owner wants to afford total peace of mind.
Owning and running a small business, or any size business for that matter, is an enormous responsibility. As the boss, everything rests on your shoulders. And unlike when you are employed, there’s no guaranteed sick pay, holiday pay or pension.
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The financial insecurity that comes with running a small business is often one of the most prominent risks that weighs on an owner’s mind. Fortunately, with income protection for small businesses, this worry can be alleviated, leaving you to focus on what you do best.
Income protection does exactly as its name suggests: it protects your income. So in the event that you are unable to work due to an illness or injury, income protection will provide you with a financial safety net in the interim.
Typically, income protection pays anywhere from 30 to 70% of your income while you’re not working. How much you want it to pay simply depends on your circumstances and how much cover you would like.
With the financial aspect covered, you can focus all your attention on getting better and back to work.
One of the angles to consider when contemplating income protection is how long any savings you’ve got would last if you could not work. When considering this, it’s important to take into account any regular financial commitments you have, such as a mortgage or rental payments.
This is one of the most frequent questions asked by small business owners and with good reasons. As you know, your earnings aren’t always black and white. But don’t worry, professional advisers, like us, are highly experienced in helping small business owners secure income protection.
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We often use things like your share of any business pre-tax profits generated. The amount of cover you need will depend on factors like the size of your mortgage and whether you have taken out any loans to support the business.
If you think you might struggle to prove your income, don’t be deterred. There are plenty of options available and we are here to help you secure the right cover.
How would you survive financially if you found yourself unable to work because of an illness or injury? How long would any savings you’ve got last in such an event? Income protection for small businesses could provide you with the financial safety net and peace of mind you need.
Contact us today and discover how we can help you secure the right policy for you.