Working for yourself can be incredibly rewarding. But what if illness or injury left you unable to work? How long could you stay afloat?
Given that more than a quarter of Australian businesses only have enough cash on hand to sustain themselves for three months or less, it can be a major concern for anybody who works for themselves.
The good news is that small business owners and the self-employed can protect their finances in a worst-case scenario with the right type of life insurance.
Life insurance: A lifeline for the self-employed
Life insurance is often seen as something that provides your loved ones financial protection if you die. But it can also be an essential safety net if you’re self-employed, or you run a small business, and are unable to work.
Working for yourself means you generally don’t get paid sick leave and aren’t entitled to workers’ compensation. Not only that, but your livelihood depends on being able to do your job.
So how can life insurance help? There are a few different types of cover that can keep your business afloat:
- Income Protection insurance will pay up to 70% of lost income if you can’t work for a while due to an illness or accident.
- Trauma insurance will pay out a lump sum if you can’t work due to a serious injury or illness like cancer, heart attack, stroke, major burns or a condition that puts you in intensive care.
- Total and Permanent Disability (TPD) insurance will pay a lump sum if you become totally and permanently disabled due to an illness or injury and can’t work ever again.
Are you covered?
If an accident or illness would put your personal or business finances at stake, life insurance can give you peace of mind that you won’t quickly run into financial difficulties.
You can get cover for as little as a few dollars a day. In some cases, you can even claim your Income Protection premiums as a tax deduction**.
Ready to protect your livelihood? Click below to compare policies from 10 of Australia’s leading insurers.
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This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.