And just like that, we’re into September. Kids are going back to school, the weather is starting to shift, and as much as you may miss the summer, right now is the perfect time to analyze your wealth and mitigate risk.
One of the first questions I like to ask clients about their wealth is “what are you doing to protect your #1 income producing asset?”
They often think I’m referring to their business, their client list, or even the largest piece of real estate they own. But it’s not that at all. No – your #1 income producing asset is *you*.
What would happen if you got sick, disabled, or passed away? More importantly, what would happen to your family or spouse? It’s your responsibility to configure your wealth in a way that there wouldn’t be a financial deficit in the absence of you being able to work.
The fact is, you’re not a machine.
Sick days are a rarity for business owners, because if you’re not working that day, the business isn’t working. That’s fine in the short-term, but over a longer period of time, what would you do if you got really sick?
Critical illness, disability, and life insurance were designed for this exact purpose. They offer the financial help required to pay for life altering illnesses, disabilities, or loss of life. Depending on your condition and coverage, you may be entitled to a portion of your income or a lump sum payment.
There are many different types of insurance plans and coverage, which is why it is so important to speak with a professional who understands your holistic situation. These plans can help you avoid financial concerns while you focus on your health.
Each situation is different in terms of how best to plan for the possibility of needing to take time off of work. Some families get covered so the spouse can take time off to care for the ill, and others get coverage that includes additional help around the home.
We would take time to plan for the worst-case scenarios. Life insurance makes sure anyone who depends on you for financial support receives money upon your death to help them carry on.
This could mean living expenses, child care, debt repayments, or anything else. The goal is to do everything possible to make sure your family is taken care of.
There are many different types of life insurance, including term, permanent, creditor, and a joint policy with your spouse. This is yet another reason to consult us at Kismet Wealth Group to see what policies are a fit for you.
And in the longer-term, we should have a discussion about how to configure your business so it isn’t solely dependent on you being present. Whether you’re planning for a longer vacation, or just want to be prepared should anything happen to you, this is a great decision for your health and wealth that we at Kismet Wealth Group would love to discuss with you.