When you own a business in Ottawa things can go wrong that will impact you and your partners, your family and your crew. You’re the captain, so when it comes to your business, you have both hands on the wheel at all times. You need your staff to run the operation, but the really big decisions fall on your shoulder (the one without the parrot). In the unfortunate event that you develop an illness or encounter a disability, your company could be like a treasure map without an X, and the financial effects could threaten to bring down everything you have worked so hard for. It’s important to hope for sunshine but plan for rain. There are products that can help you and your business survive the financial storm that a personal accident, injury, or illness can bring.
Insurance products that a great captain should consider:
- Critical Illness insurance – provides you with money so that you can focus on recovery rather than worrying about the bottom line during an illness.
- Disability insurance – replaces lost income when a serious accident or illness prevents you from working.
- Long-term care insurance – protects your estate and retirement savings from being depleted in the event that you require long-term care.
- Health and Dental – protect yourself and your family against the ongoing and unexpected cost of healthcare expenses not fully covered by your provincial health insurance plan.
- Group Health Plan– a simple, effective and affordable group benefits program for first time buyers. Protect the health and wellness of your employees and their families while also providing a tax-effective form of compensation.
Protect your loot
Once you and your crew find the X that marks the spot and dig up the treasure its time to find a safe place to keep it. As a business owner your personal assets are at risk in the event of creditor claims and mutinies. Without a creditor protection strategy, your personal assets, like your retirement savings, may be awarded to creditors if you face personal or professional liability claims. You need to act when the business is new, once a business is in trouble or you are forced to walk the plank, it’s too late to protect your personal assets from creditors.
You can protect your personal assets from business creditors with the right investment and insurance products and get professional tax and legal advice on a creditor protection plan. Here is how can a creditor protect plan help you and your business:
- When investments in segregated fund contracts and guaranteed interest contracts are made in good faith and a proper beneficiary is named, small business owners may protect their hard-earned personal savings from claims by creditors.
- Mutual fund investments, when held within a registered plan, also have the potential to be protected from creditors in the event
- Hold a life insurance contract personally (not corporately), and name a “family class” beneficiary.
As the captain of the ship you are responsible for taking care of a lot of people on an uncharted journey on rough and unforgiving seas. You should protect your family your crew and your loot from any unexpected illness or injury that could take down the captain and the ship along with her.
Andrew W. Bradley
Photo credit: Kris Krug / Foter / CC BY-SA
Great metaphor!! We keep meaning to get on top of this but haven’t made the time to sit down and look over our options unfortunately. Thanks for the timely reminder.
Great information. Something we need to do.
Great advice. I cringe at thinking of finances.
What a fun and clear way to present important (but often over looked) information. Though I do not own my own business, my sister and her husband each own one. I plan on sending this on. Thanks!
Thanks for sharing this important information