Insurance through the banks can fall short of filling your needs and protecting you interests. Ensuring your business and family is protected is paramount. There are many different types of coverage you can buy, and only certain ones will completely protect you. The differences in contracts for insurance are vast and having a licenced professional assist you in determining will ensure you get the best coverage for the lowest price. Further, your advisor should be able to pull quotes from every insurer in Canada and assess which suit your needs best.
Right now, your business is growing. If you did the math and determined what your most valuable economic business asset is, it would most likely be you and your ability to manage your business. What would happen if tomorrow, you couldn't work? Could your business continue without you? Do you have enough money set aside to support yourself indefinitely? Could someone else step into your position and replace your expertise and leadership? Would partners or employees be affected if your business was fail? That earning potential is key to your future goals, aspirations and success.
Large amounts are spent protecting our homes from fire, our cars from accidents and our businesses from liability. It is common for busy business owners to overlook their importance in managing their company and to produce an income - and that income is easier to protect than most people think. Simple steps can be taken to protect from the financial hardships associated with disability, illness, even death, so that you have one less stress to worry about. Plus, this protection will not be any more affordable than it is for you today. As you age and as health issues arise in your future, your ability to become insured becomes increasingly more difficult and more expensive.
Once a business has gotten a foot hold, profitability starts to rise. As cash becomes more available, greater protections can be put into place. Your company increases in value every year and as a result, your shareholder agreements need to be revisited. Putting adequete funding in place protects the interests of all partners and ensure's that financial stress won't distract the business and potentially hurt the company's future. Proper funding ensures that your business continues to grow and any involved parties are protected and properly compensated - all without big, costly loans from the bank.
In all of this, limiting the risk to your family becomes key. Using tools like funded shareholders agreements, life, disability and illness insurance and health and dental medical plans are a cost effective method to protect those you care about.