Understanding the importance of Personal Insurance in your business plans
Will your business still be around if you’re not?
Tens of thousands of Australians devote their entire lives to operating a successful business, toiling their heart and soul into setting up and running their company. But none of us are here forever. Just as you need to discuss important issues such as organ donation and your estate with loved ones, it’s important – but often overlooked – to have similar discussions about your business needs in the event of your sudden death or disablement. And then take steps to secure the future you’d want, whatever that happens to be.
Have you ever considered what would happen to your business if you weren’t around to run things the way you do today?
It’s a critical issue for businesses of all sizes. Back in September 2014 Ana Patricia Botin was appointed Chairman of the Eurozone’s largest bank, Banco Santander, after the sudden death of her father from a heart attack. It lead to a hugely unsettling business predicament after four generations of family reign over the US$135 billion company.
While on a more modest scale than Botin’s situation at Santander, the impact on small and medium sized businesses can still be severe.
You may wonder if it’s really possible to plan and protect the future operation and prosperity of your business? The answer is a resounding ‘yes’, especially by understanding the multi-layered area of personal insurance.
Today more and more Australian business owners are factoring in personal insurance under the wider umbrella of business insurance needs for small business. They do it simply by incorporating income protection, total and permanent disablement, trauma cover and life insurance in their existing business insurance policies. By considering the same steps, these additional insurances could help to protect you, your family and your business should you or a key staff member be permanently disabled, or in the event of your death.
The most popular areas of personal insurance include:
- Life Insurance is paid in the event of your death and help to cover large expenses such as a mortgage or business.
- Salary Continuance or Income Insurance provides income if you are totally or partially disabled due to an illness or injury and unable to work for an extended period of time.
- Total and Permanent Disablement pays a lump sum if you are permanently disabled and unable to return to work. Similarly, Trauma Cover pays in the event of a major trauma.
- Key Person Insurance provides financial protection against loss of income, profits and the capital value of your business should a key person suffer a major illness, injury or death.
These major personal and business insurances will assist in guaranteeing the ongoing operation of your business should something traumatic happen to you or key staff members. Of course as with all insurances, your personal insurance should be reviewed regularly to ensure it continues to meet your current business and personal financial needs.
Lewis Insurance Services through our life risk adviser Paul Lewis, is here to advise our clients on the options available for these Personal & Business insurances for our clients. To discuss further, please contact Lewis Insurance Services on 07 3217 9015 or send us an email at firstname.lastname@example.org .
This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L (06/06/2016)
This information and any accompanying material does not consider your personal circumstances as it is of a general nature only. You should not act on the information provided without first obtaining professional financial advice specific to your circumstances and considering the Product Disclosure Statement.
Lewis Insurance Services is a Corporate Authorised Representative of Australian Mortgage & Financial Advisers Pty Ltd (AMAFA), ABN: 26 088 464 939, AFSL No: 389206, Corporate Authorised Representative No: 430967. Advice on Life Risk Insurance products is provided by AMAFA. Paul Lewis is a Authorised Representative of AMAFA, AR No: 262180 for Life Risk Products.