If you are self-employed or in a small partnership, an extended absence from your business as a result of sickness or injury could have a severe financial impact on you and your family. Not only would business revenue reduce or even stop but fixed expenses of the business may continue.
If business revenue reduces but expenses continue would you allow the business debt to grow and
compromise the future viability of the business? Or fund the payment of the business expenses
from other income or possibly look to sell personal assets? None of these alternatives is particularly appealing.
Business expenses insurance can reimburse you for up to 100% of the fixed business expenses that
continue to be incurred while you are unable to work because of a sickness or injury – both your business and your personal finances are protected. Benefit payment is usually excluded if you suffer a sickness or injury as a result of:
• war or an act of war
• a self-inflicted act
• uncomplicated pregnancy.
However, policies can differ and you need to have your financial adviser check the specific conditions that apply to any contract you are considering. It is also important to remember that benefit payments usually do not start immediately; an excess or waiting period can apply during which no benefit is payable. The waiting period is usually 14 or 30 days. Work with your adviser and choose one that suits your needs and your budget.
To protect your business from whatever the future may bring, speak to your financial adviser today.
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