Do Business Owners Need Income Protection Insurance?

It is very important for business owners to maintain a steady cash flow, especially in the early years of its inception. Any downtime a business experiences can have a negative effect on its future success, which is why it is imperative to seek advice and compare Income Protection Insurance options for you and your business. But what exactly does Income Protection Insurance provide, and why is it important?


Financial Security

A steady income is vital for the smooth operation of any business; without a steady and dependable flow of income, you may struggle to cover your fixed costs and maintain ongoing operations.

A situation where a business owner is unable to work due to long term illness or suffering a serious injury, can regrettably cause a business to suffer. Not only will the business owner be unfit to continue running the business during this time, but it is also likely they may need to withdraw from the business’ account to pay for their personal and living expenses.

Having a comprehensive Income Protection Insurance policy in place can prevent the business suffering.

Financial security and being able to maintain your current lifestyle and business operations are some of the main reasons why it should be a priority to compare Income Protection Insurance with Cover Australia.

It is helpful to know that an ongoing benefit can be received from the chosen insurance provider to cover bills and house expenses, which in turn keeps money in the pocket of a business owner. This money is also able to assist a business in remaining up and running.


Medical Bills

When health becomes an issue, the business is not the only thing that suffers – personal finances will also be negatively affected.

Depending on the treatment received, medical bills can amount to thousands of dollars, and most people don’t have enough savings to pay for such an expensive bill. Thankfully, Income Protection Insurance payments can also be used to settle medical bills, so as soon as any health conditions are taken care of, the cost of care will be one less issue to deal with.

Some comprehensive Income Protection policies also have ancillary benefits which provide payments to assist with rehabilitation expenses to help you recover and get back to work as soon as possible. It is always important to compare Income Protection insurance policies and the extra benefits they offer as some are far superior to others.


Lack of Benefits

While being the owner of a business certainly has its positives, there are also benefits employees hold that business owners don’t have the luxury of partaking in.

Some of these benefits include the company providing paid sick leave, or employees receiving payments for extended leave periods due to illness. Also, many people may be unaware that self employed business owners are not covered by worker’s compensation, even if they sustain the injury during business activities.

Therefore obtaining Income Protection insurance is essential so that if you do happen to suffer a serious injury at work you will still have an ongoing income stream following your selected waiting period.

Being a business owner can be tough in circumstances where you are sick or injured because you only have yourself to depend on when running into financial trouble. This is why it is so important to compare Income Protection Insurance to ensure you have that an alternative means of income should you need it.


Business Expenses Cover

If you are self employed or in a partnership and running a small business, then you may be eligible to apply for Business Expense insurance.

If a business owner chooses to purchase business expenses cover, they are aiming to cover the fixed operating costs of the business. Proceeds from making a claim can be used to cover rent, debt repayments, employee salaries and any other fixed expenses whilst you are unable to run your business for a period of time.

That means that when the immense benefits of income protection and business expenses cover are combined together, the ability to maintain a steady income to support both your family and your business will be enhanced when you need it. Income Insurance is the best way to cover all areas and maintain a steady flow of income.


Tax Deductable Premiums

There are many benefits for business owners who take the time to compare Income Protection Insurance and purchase the appropriate policy to suit their needs. One of the biggest of these benefits is related to tax.

Insurance premiums paid towards income protection policies are also usually tax deductable. Having the security of Income Protection Insurance in place combined with the ability to lower tax liabilities are big positives to having an income insurance policy.


Compare Income Protection Insurance with Cover Australia

Cover Australia has the expertise to help you find the Income Protection Insurance policy and the Business Expense Insurance policy that you and your business deserve. Don’t go it alone to compare Income Protection Insurance policies when our reputable insurance advisers are on hand to help you out.

Our advisers are extremely knowledgeable and ready to assist you 7 days a week. Take the time to visit our Cover Australia website to compare Income Protection Insurance online, and together we can find the best policy for you.

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