Reposted with permission from Canada Life: originally posted on canadalife.com.
As a business owner, you know what it takes to be successful.
So, you want to protect your business today while making sure you plan for retirement and maybe even leave a legacy.
But what happens if your plans get interrupted and you can’t continue running your business because of a health issue?
Running a successful business means dealing with tough issues – and preparing for the unexpected is one of them. Insurance is one way to help make the most of what you leave behind. You can use key person insurance in a number of ways.
Help protect your business with insurance
Here are some options you can consider as part of your financial plan. The right insurance coverage can help you:
- Protect your business, if you, or a key employee is suddenly unable to work
- Pay off business loans
- Provide you or your business partner with money to buy the other person’s share of the business, if one of you is leaving
- Cover expenses for you or your family if one of you is leaving
Ensure you have a smooth exit strategy
You may want to retire and pass on your business. That’s why it’s important to have a plan in place to help with a smooth transition. Have you thought about your options?
Leave a legacy for those you care about
It’s important to think about what will happen to your money and your family in the future:
- Do you have a plan in place to help take care of loved ones?
- Are you growing your wealth in a tax-efficient way?
- What about your estate? Will it be easy to split it fairly between family members?
Plan to see the whole picture
You’ve worked hard to grow your business and make it a success, that’s why protecting it is important.