Many people think their greatest asset is their home, but your greatest asset is your ability to earn.
Your greatest asset is your ability to earn a living.
If you ask people what their greatest asset is, many would reply that it is their home or vacation property. Your greatest asset is actually your ability to earn the money that it takes to pay for the real estate, the lifestyle you choose, and the family you support.
All of us, at times, face challenges to our health and well-being. A serious illness or injury may make it difficult to continue to earn a living. Small businesses are especially vulnerable to financial loss when the owner is unable to work. Owners are not only responsible for their business’s continued success but also their family’s standard of living.
Just because you are sidelined, doesn’t mean your business and your lifestyle have to suffer.
Unlike life insurance, Living Benefits is a line of insurance products that pay out a benefit, under specific circumstances, during the insured’s lifetime. The 2 main categories of Living Benefits products are Critical Illness Insurance and Disability Insurance. For incorporated business owners, there are advantages to having your insurance corporately owned. Let us tell you how – when it is appropriate, and when it is better to hold coverage personally.
Critical Illness Insurance
When people are younger, they are more likely to experience critical illnesses such as cancer, a heart attack or a stroke than they are to die. Critical illness insurance, ideally purchased while someone is relatively young and healthy, pays a tax-free lump-sum benefit that can be used for any purpose – for example, to fund health care or treatment, cover household and family expenses, protect retirement savings or manage business expenses.
Most people know that critical illness insurance provides tax-free money when you need it the most. But did you know it can also help you save for retirement?
When people with disability insurance develop a physical or mental health disability that prevents them from working, they can receive regular payments of a percentage of their income. Like a critical illness insurance benefit, this money can be used for any purpose – for example, to replace income, reimburse business expenses or fund a buyout agreement that allows someone else to take over the insured person’s business.
Written by Susan Walker (Stonebrooke Private Wealth Management) – reproduced with permission
This article is provided for information purposes only. Although the content is believed to be reliable when posted, Podium Prosperity Group cannot guarantee this information is current, accurate or complete and does not assume any liability. The information is not intended to provide any insurance, financial, legal, accounting or taxation advice and should not under any circumstances be relied upon without consultation about your specific situation. The information is subject to modification and updating from time to time without notice.