Changing careers or starting your own business are both big decisions to make. It can be very rewarding if your move goes according to plan. However, to deal with personal risks and to ensure a smooth progression of your business endeavours, an important aspect to consider is your health and financial security. Fortunately, there’s always a financial solution to fit your needs:
Just starting out? Money is tight and there isn’t a lot of room for error.
Chances are critical illness insurance as well as disability insurance could be good options to look into. This could be a way to keep things going if you need to step away temporarily. Critical illness insurance pays you a lump-sum tax-free amount for a covered illness or condition while disability insurance pays you a tax-free monthly benefit1 if you’re unable to work due to an accident or illness.
Business overhead insurance could cover your fixed business expenses. You can also consider a solution for your business where the company may receive insurance proceeds should you receive a critical illness diagnosis. In some circumstances the insurance policy can be jointly owned with your company on a shared ownership basis.
Making the big switch
Changing employers will likely impact your health care coverage, and if you’re self-employed or do not have group insurance, getting insurance protection is a good idea since health care costs not covered by your provincial health plan can add up quickly. With health insurance, you choose exactly what you want covered and the premiums may be deductible in the calculation of net business income for tax purposes.
We hope the above tips help you make successful decisions. If you have questions on the financial aspects related to your career or business, write to us and we will get back to you.
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1. As long as this benefit is not received in respect of the loss of your income from an employment pursuant to a group plan under which your employer has made contributions. In this case, the benefit will be taxable.