As a practice owner you don’t hesitate to insure physical assets in your business such as computers and office equipment. However, often overlooked is the importance of insuring yourself or other key people in the business against the risk of death, disability, illness or injury. This can be a very risky oversight, as the long term absence or loss of a key person can have a dramatic impact on a business and each owners’ interest in the business.
If sickness or injury meant you had to take time off? What would happen to your income? How would you know your business was in safe hands?
Insurance is the cornerstone of a comprehensive financial plan and can help to reduce the financial impact of events beyond your control. The key to good protection is to provide the necessary amount of funds to the relevant people at a time when they need it most. This can be done through insurance.
An appropriate personal insurance strategy can help you:
At Lawyers Life we regularly review your insurance portfolio so that as your career progresses and your practice grows, your insurance strategy remains appropriate to your changing needs.
You have a number of fixed expenses in order to run your practice that won’t go away just because you are out of action for a period of time.
If you’re responsible for generating revenue for the firm, then meeting these expenses can be a challenge.
It’s important that if you’re out of work for a while, you can continue to comfortably meet these expenses while business revenue is reduced.
Business Expenses Insurances is designed to pay for these fixed expenses for a period of time until you can return to work.
It’s quite likely that you are the major income earner in your family.
In the event of your unexpected passing do you have sufficient life insurance in place that will leave your family in the same position they are currently in – i.e. this might mean a level of insurance that will allow them to replace your income for as long as you are planning on working?
Other important things regarding your life insurance:
You’re no doubt paying more tax than what you would like. Are your policies structured in such a way that allows for maximum deductibility of the premiums?
If it is likely that you will hold some of your insurances for the next 8 years or longer, have you explored level premiums to manage the cost of your insurances over the long term.
