3 TYPES OF INSURANCE ENTREPRENEURS ABSOLUTELY NEED
As an entrepreneur you are probably more used to the idea of risk management than most, which is why it would be a shame if you overlooked the number 1 recommended personal risk management tactic: insurance. Entrepreneurs are notorious for having risky habits outside of their professional lives. It takes a certain kind of personality to become an entrepreneur – a more adventurous personality. As any good investor and entrepreneur knows, hedging against risks is the hallmark of success.
Here are the 3 absolute most essential insurance plans you need as an entrepreneur
- Life Insurance
Along with the business you leave behind, life insurance is one of the best gifts you can leave to those left behind after you pass away. This is one type of insurance you cannot afford to skip or even postpone, especially if you have a family that depends directly on your income to pay the bills and survive.
Experts suggest acquiring coverage of up to 10 to 12 times your annual salary. An amount like that will help take care of any funeral expenses and provide enough of a financial cushion to allow your family stabilise far beyond the grieving period. You want to sit down with a financial planner to help you decide which of the various life insurance policies are best for your particular situation. In making your choice, factor in other financial realities like mortgage payments.You can even set up your life insurance to pay off your mortgage as explained by this ultimate guide at http://www.meetfabric.com.
- Long-Term Disability Coverage
Long-term disability coverage can be likened to a life-jacket: it makes you look awkward and obsessive when you don’t need it; but you are thoroughly thankful for it when you do need it. You may not think you need this form of insurance, especially if you already have health insurance, but the statistics suggest you should think otherwise:
- According to the Social Security Administration, 3 in 10 workers joining the workforce will end up disabled, unable to work before they are of retirement age.
- Almost 90% of disabling illnesses and accidents are not related to work.
- Disabilities cause about 50% of mortgage foreclosures.
If you are too sick to work for several months or indefinitely, your health insurance might foot the medical bills, but what substitute do you have for the goods and services your lost salary provides?
- Health Insurance
According to a Harvard study, your family is just one major illness away from bankruptcy. The study also revealed that over 60% of personal bankruptcies recorded in 2007 in the US were due to health problems. The biggest cause for concern about the findings of this study is the fact that 78% of those who filed for bankruptcy had medical coverage at the onset of the illness. If you don’t already have health coverage, it’s about time you invested in some, and if you do already have, you want to make sure you have enough.
Unlike most people who can rely on their bosses to provide group insurance plans, as an entrepreneur you have no boss and have to look after yourself by yourself. Start by shopping around to find insurance policies that fit your needs and budget. If you are over 50 years of age, there are some options made available to you by the American Association of Retired Persons (AARP).
