Have you set out on your own and launched your own business? Good for you. Business ownership can be challenging at times, but it can also be a fulfilling and rewarding experience. Many North Carolina residents, including a significant amount right here in Winston-Salem, have made the same decision as you to be their own boss.
One of the biggest challenges in entrepreneurship is deciding how best to deploy capital. You may have a limited amount of cash to work with, and you probably want to use it in a way that will fuel your business’s growth.
If you’re like many entrepreneurs, you may fund your business at the expense of personal needs. For instance, you may forego a vacation, a new car or other personal spending needs in order to keep money in the business.
You may even choose to not purchase certain types of insurance so you can reduce your personal expenses. Only you can decide which types of insurance are truly necessary and which aren’t.
Obviously some forms, like car insurance and health insurance, are mandated. However, there are many other types of insurance that aren’t. Below are three types of insurance you may not want to forego, as they can provide valuable protection. Consider your needs carefully when deciding whether or not you need these forms of insurance.
1. Dental insurance
Under new healthcare laws, health insurance is mandatory for everyone. Fortunately, you have many options available for either individual health insurance or coverage for you and a small group of employees.
You may be tempted, though, to skip dental insurance in an effort to save money. That could be a mistake. Many dental plans are relatively affordable, especially when you compare the premiums to the cost of paying for procedures out of pocket. If you need fillings, crowns, root canals or more, you could face a steep dental bill if you don’t have insurance.
Also, many diseases, such as periodontal disease and even heart disease, can be caused by bacteria in your mouth. Regular dental care can reduce your level of bacteria, and many dental plans cover two dental cleanings per year. Before you forego dental insurance, consider how costly it could be to pay emergency dental expenses out-of-pocket.
2. Disability insurance
According to the Council for Disability Awareness, one in four adults will experience disability at some point in their life.1 If you suffer a disability that prevents you from working for an extended period of time, it could limit your ability to run your business and generate income.
Consider how you would meet your financial obligations if you were physically unable to work. Would you withdraw money from savings? Would you be forced to sell assets and possibly even your business?
Disability insurance prevents these kinds of issues by providing you with income while you are unable to work. Many disability policies have a number of moving parts, so you can customize them to fit your needs and your budget.
3. Life insurance
Do you have a spouse, kids, or other loved ones who are dependent on your ability to generate income? How would they support themselves if you passed away? Obviously they would suffer emotionally. However, without your income, they could also suffer financially.
Life insurance is an effective way to mitigate the financial risk associated with an unexpected death. When you pass away, your beneficiaries receive a tax-free benefit to help pay bills, cover debt obligations and support their standard of living.
Think you can’t afford these types of insurance? You might be surprised. A financial professional can help you compare various options to find the best strategy for your needs and goals. Contact us here at J. Harris Financial. We welcome the opportunity to help you review your situation and identify the best forms of protection for you and your business.
This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
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