Starting or Started a New Business?

Starting a new business is challenging enough, without having to worry about how you'll cope if you're unable to work, due to illness or injury. Do you know people that have started a business recently? Maybe you have. Did you notice how focused they are on getting their business systems set up and their message out the door? Is it any wonder, with the number of small business people in New Zealand? The problem we all face in starting out on our own in a full time self employed venture, or buying into an existing business is that we forget that their new venture could come crashing down around their ears, should their health fail.

Of course there are plenty of people who have thought of protecting their income, and get as far as thinking… “Hold on a moment, there is no income to protect? I’m not making anything to speak of here yet?” Wouldn’t it be great if we were less at risk as a result of our not making much money in our business? That would solve a lot of problems. But finances don’t work that way, of course.
Some people starting out in their new business are content to rely on ACC. If you live in New Zealand, which is where I work, You’ll be aware that ACC is the no fault accident compensation plan that covers, violent, visible, external, non gradual injuries and some work place stress. That’s quite an impressive list I know, but that is the way the law works here. The key to ACC is that you will be paid if your injury for a period of time, but expect it to be a short period. Also, expect ACC to only “respond” to your request for money if you qualify. It is not a catch all to replace some of you income in the case of all sicknesses.

So where do you turn? If you have no real income at the start, but want to have some protection what is the best choice? That’s the question. Until the last few years there was little or no choice. An overview of what is available is the content for another article. If you wish to discuss this with me my contact phone number is 03 323 4241 - just ask for Neil Smith.
This is an article from Life Risk Limited. http://www.liferisk.co.nz

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