Do you need income protection for you while managing a small business?

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If you're self-employed, a sole trader or the owner of a small business, your contribution to the business could be critical to its success. This may mean that if you can't work, the business might not be able to continue.

In fact, over the 2014-2015 financial year, business entry and exit rates were the highest for sole proprietors1, this may suggest that there could be an element of uncertainty that can come with such a business model. Whether you fall ill, are injured or can't work for another reason entirely, considering the most appropriate insurance could help to protect your business and your family from financial risk.

That's where income protection could come in handy.

What does income protection cover?

Often, income protection may provide you with as much as 75 per cent of your regular income if you can't work due to illness or injury. Should you need to use the cover, it can be helpful, particularly if you need your income to continue making home loan repayments or staying on top of your day to day bills.

How do I get income protection?

It can be a complex and confusing area, IMB Financial Planning are well qualified and can arrange a wide range of insurance products that could help with small business owners and sole traders carry on their business if illness or injury strikes. Get in touch with our Financial Planning team for an obligation free appointment to see what we can do for you.In some cases, the ability to work for small business owners can be their livelihood, and that could mean considering suitable income protection options for you and your business. Income protection may not just help you out when things go wrong, but could also help your family remain financially stable if they are reliant on your income.

Source:

1 - Australian Bureau of Statistics

ASIC's MoneySmart

Australian Government Commonwealth Superannuation Corporation

 

This article has been prepared by IMB Financial Planning for general information and reference and it is not intended to be advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice when appropriate, and consider the relevant Terms and Conditions, Product Disclosure Statement and Financial Services guide before deciding whether to acquire any products or services offered or arranged by IMB Financial Planning. IMB Financial Planning Ltd acts on behalf of a number of insurers.  We do not recommend any third party products or services referred to in this article and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. IMB Financial Planners are Representatives of IMB Financial Planning Limited ABN 23 094 730 195 AFS. Licence No. 234660, a wholly owned subsidiary of IMB Ltd trading as IMB Bank. ABN 92 087 651 974 AFSL No. 237 391.