Running a business means constantly reviewing something.
Sales. Expenses. Staffing. Customers. Cash flow. Growth plans.
We pay attention to these areas because they tell us how the business is doing and where adjustments may be needed.
But another review can easily get pushed aside: the financial protection of the person behind the business.
Many business owners already have some form of life insurance, disability insurance or critical illness coverage. The question isn't always whether you have coverage. Sometimes, the better question is:
Does what you put in place years ago still fit your life and business today?
A few things worth reviewing
Your life insurance
When did you last look at your policy?
Your income may have changed. Your business may have grown. You may have taken on new financial responsibilities.
Even something as simple as your beneficiary designation deserves another look. Does the person currently listed still reflect your wishes?
Your business may have changed too. Perhaps you've incorporated, added a partner or taken on new responsibilities. Does your existing coverage still reflect where you are today?
Your disability coverage
For a business owner, your ability to work can be one of your most valuable assets.
If you already have disability insurance, look beyond simply knowing that you have a policy.
What is your current monthly benefit? What is the elimination or waiting period before benefits begin? How long could you comfortably manage your personal and business expenses during that period?
What made sense when you purchased the policy may look different today.
Your critical illness coverage
Critical illness policies can differ in the conditions they cover, definitions, limitations and other policy terms.
If you've had your policy for several years, it may be worth reviewing it and understanding exactly what you have.
The goal isn't necessarily to replace it. It's simply to know what you're relying on.
Why do we overlook these things?
Usually, it's not because they aren't important. We're simply busy running the business.
A new client. An employee issue. An invoice. A deadline. The next opportunity.
Somewhere in the middle of building the business, it's easy to overlook the person who built it.
As we move toward the final months of the year, many business owners will start reviewing their numbers, expenses and plans for the year ahead.
Add one more review to that list:
Review yourself.
Pull out the policies you already have. Look at your coverage amounts. Check your beneficiaries. Understand your waiting periods and benefits. Think about what has changed since you originally put the coverage in place.
Sometimes, you don't need something new.
You only need a reminder to understand and review what you already have.
We regularly review the business we’re building. Let’s not forget to review the protection of the person behind it.
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