Are you self-employed? What Coverage’s should you be Considering.
Canadians are becoming entrepreneurs today more than ever. Many are starting their own businesses for the first time. Economists say this is a trend that is here to stay – people are looking for more flexibility with their time and because of the digital revolution some can work anywhere in the world.
Your company is your baby. You worked hard to build it, so why not protect it by putting the proper insurance in place? Transfer that risk over to an insurance company so you can get about the business of growing your business even if you or a business partner becomes ill or dies.
The following are a few of the insurance products that you should consider if you are self-employed:
- Health benefits to cover costs for medical expenses
Self-employed people get sick like everyone else, so it makes sense for them to get health coverage.
High costs are preventing Canadians who don’t have health coverage from going to the dentist each year. A lot of these people include self-employed, whose income changes from month to month. If forced with an unexpected bill that costs hundreds or maybe event thousands of dollars, a lot of self-employed have to dig into their savings, or worse – go into debt.
A cost-effective way for a self-employed person to pay for health care and dental costs can be with a Health Spending Account (HSA). HSAs are easy to set up and cover a wide range of medical expenses and offer certainty of costs for the owner of the business and their employees. HSA’s simply put, is a self-funded account which allows you to put your medical expensed through your business. One of the greatest benefits of this kind of option is that you only pay for what you use.
Although HSAs are a great way to deal with regular, routine medical expenses like teeth cleaning, new eyeglasses and prescription drugs, they are limited when it comes to major medical issues. If an employee has a major health crisis this is where a traditional group health insurance plan would be better. Some insurance companies can provide an HSA inside of a traditional health care plan.
- Disability insurance to replace your income in the event that you can’t work
When you own a business, you appreciate the freedom of not having to rely on an employer to earn a living. By the same token though, if you become disabled and not able to run your business, you are also without Employment Insurance. For an entrepreneur without disability insurance, a serious injury can be financially devastating.
Disability insurance protects you in the event that you are unable to work. It provides a monthly income so that the wealth you have accumulated while running your business doesn’t simply evaporate.
- Critical illness – allowing you flexibility to hire in the event of a critical illness
Similar to becoming disabled, a critical illness such as cancer, heart attack, or stroke can be a huge setback both personally and professionally to someone who is self-employed.
Critical illness insurance provides a lump sum payment to the insured after they have survived a critical illness for 30 days. The money may be used for any purpose including medical expenses, paying your bills while you are unable to work, or hiring someone to help you run your business while you recover.
- Life insurance – to protect those you love
Finally, if you have a family who is dependent on your income, you should not be without life insurance. Life insurance provides a lump sum payment in the event of your death which your beneficiaries may use to pay off debt, use for living expenses, or it even can be invested to replace your income.
If your business has a key person who would be difficult to replace, then you might also consider getting key person life insurance which would pay your company a lump sum in the event of their death in order to help the company financially until that person can be replace. If you are self-employed, it is important to have the right insurance in place to protect the business that you have built. Let us take you through our fact-finding process so that you can make sure you have the right coverage along with the best price. Contact MiLife Insurance Brokerage today and let us put a plan together for you.