Not Having This Safety Net Could Leave You and Your Business Financially Debilitated
By Nicole A Simpson, MBA, CFEI
President, Go Fund Your Life
You’re about to enter a new decade, and your business plan is looking great. You have all the systems, tools, and resources you need to thrive. As long as you follow the plan, you will learn more money this year than you ever did. That is unless you have an accident or become disabled.
As a small business owner, you are the money machine and people are counting on you.
Your customers need you to keep solving their problems, and your family needs you to keep paying for the mortgage, utilities, and groceries. All of this depends on you, and the one thing that could derail the whole plan is an unexpected illness or injury rendering you disabled. Even if you are young, and work out 7 days a week, eat right, and visit your doctor regularly you are not protected from a disability. There are two major reason.
Reason #1: Disability doesn’t discriminate based on age, gender or race. And most people vastly underestimate their chances of being unable to work at some point in their careers because of injury or illness. In fact, a Council for Disability Awareness study last year reported more than 20 percent of workers under 40 say they’re more likely to win a big lottery than become unable to work due to illness or injury.
Ready for the real odds? One chance in 259,000,000 you’ll hit the jackpot vs. one in fouryou’ll be disabled during your career, according to the CDA. Which do you want to gamble on?
Reason #2: Your ability to earn an income may well be your most valuable asset.
OK, most people get that. In the same CDA study, people ranked their income right up there with their home — and just behind their health — as by far the three most important things in life.
But most working consumers aren’t doing anything to protect that all-important resource.
A strong majority agree it’s important to protect their health and home, but only 28 percent see protecting their income as crucial. In fact, way more people — 73 percent — think it’s important to protect their car, the CDA survey shows.
Affordable financial safety net
Consider your daily living expenses: mortgage or rent, gas, utilities, food, day care — not to mention the fun stuff like movies, soccer camp, piano lessons or those great shoes that just went on sale. How long could you continue to pay your bills without your paycheck? What about your overhead expenses, who will pay the rent at your business and keep the lights on while you are recovering form an illness or injury?
Many, if not most, of America’s workers are already stretched thin financially. A 2013 CareerBuilder.com survey said more than three-quarters are living paycheck-to-paycheck at least some of the time. And the CDA survey said only 38 percent of adults have an emergency fund to fall back on.
Disability insurance can be purchased on an individual basis or on a group basis using voluntary payroll deduction if you have 3 or more employees. Both are very affordable ways to provide financial safety nets for yourself, and your workforce. Suffering an unexpected disability should be the last thing you need to worry about this year. Be proactive and take steps to protect yourself. If you would like to learn more about ways to provide financial safety nets for yourself and your employees contact us and one of our licensed financial services professionals will help you devise a protection plan.
Nicole A Simpson, MBA, CFEI
Go Fund Your Life
info@gofundyourlife.com
Toll Free 866-906-4395
Local 614-707-5772
1985 W Henderson Road #2141
Columbus, OH 43220
