Part 1 of 3
For the past couple of weeks, I’ve been working on a series focusing on what I call The Three Question Fact Find. For me every new client relationship starts with the same three questions. If you’re just joining the conversation you might want to catch up by walking through those questions and the accompanying videos here:
Since I tend to work with a lot of business owners and their employees, I have found that these individuals come to the table with a unique set of circumstances. As a result, I have developed a second Three Question Fact Find for Business Owners. Depending on the nature of my relationship with the business I may start with the original three questions and then move on to these additional questions or I may start here and circle back to the first set of questions later. Regardless of how I get there, the ultimate result is the same, for business owners the Three Question Fact Find is six.
Question One – What happens to you, your business and the people you care most about if you or a key employee don’t make it to work tomorrow?
We aren’t talking about something minor keeping you away from work for a few days, or even a couple of weeks, like the flu or a broken finger. We’re talking about a major, life altering event that keeps you home, or heaven forbid in hospital and unable to see to day to day operations, for several weeks or even months. Who runs the business then? How do you get paid?
Statistics Canada reports that people under the age of 65 are three times more likely to be off work for 90 days or more at some point in their career than they are to die. What’s more, business owners tend to push the envelope and come back to work before they are physically ready often ending up re-injuring themselves or re-aggravating whatever ailment it was that sidelined them in the first place.
Most business owners understand the value of life insurance to protect their families and provide a way for business partners to buy out their shares. Very few however have considered the consequences of living through a long-term illness only to watch their only source of income fizzle away. Long Term Disability Insurance structured as either income replacement or overhead expense coverage can go a long way to keeping your business viable while you are concentrating on recovery. Coupled with Critical Illness Insurance to offset one-time expenses associated with specified illnesses, like a heart-attack or cancer, and you can have most of your bases covered in terms of long-term health related concerns.
Each of these options can also be extended to key employees should there be people within the organization whose services can’t be easily duplicated. What if your top salesperson for instance had a car accident on the way home tonight, heaven forbid, and needed six months of rehab to learn how to walk again?
In most cases once we’ve dealt with the personal needs of the business owner and their family the next most important question for any owner must turn the focus to the long-term viability of their business. So, the question remains, what would happen if you or a key employee didn’t show up to work tomorrow?
For more information or help with your financial plan contact: firstname.lastname@example.org or simply leave a comment below.