Upcoming Events

There are currently no events, please check back soon.

Book a FREE financial
health check today!

Recent Articles

How to supercharge your immune system naturally

By Teresa Cutter The Healthy Chef
This article is brought to you by TAL, in partnership with Healthy Chef aiming to inspire healthier, happier lives. When I first moved to Sydney from Perth around 15 years ago, I was so stressed out and run down that I ended up getting pneumonia. My immunologist recommended an immune boosting dieta...

Read More ...

Foods to boost mental health

By Teresa Cutter The Healthy Chef
This article is brought to you by TAL, in partnership with Healthy Chef aiming to inspire healthier, happier lives.
A healthy diet that's full of fresh, honest wholefood ingredients can go a long way to boosting your mental health. In fact, studies show that good nutrition is essential for ...

Read More ...

Recipe: Immune boosting chicken soup

By Teresa Cutter The Healthy Chef
This article is brought to you by TAL, in partnership with Healthy Chef aiming to inspire healthier, happier lives.
Serves 4 You'll need:
10 cloves garlic, smashed (approx 1 whole bulb)
tablespoon finely grated ginger
tablespoon fresh grated turmeric (see notes)
1 litre (4 cups) chicken...

Read More ...

What is your aged care funding strategy?

When it comes to planning for retirement few of us think beyond the opportunity to travel and do all those things we've been putting off until we have more time and fewer responsibilities. It's safe to say that moving into residential aged care is not on anyone's bucket list. But as the population ages, it's a possibility that fe...

Read More ...

< Previous | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | Next >
Articles via RSS rss

Are you a young professional?

Life insurance and Income Protection for the self-employed

Written on the 5 February 2018 by Arrow

Life insurance and Income Protection for the self-employed There are over two million self-employed Australians in the workforce today.i Running your own business can be rewarding in many ways. However, without the safety nets and security offered by larger corporations, it's important to consider financial protection as part of essential business planning.

When small business owners think about their insurance needs, they immediately think to put cover in place to protect their physical assets, such as cars, equipment and buildings. However, they often miss the most important asset in their business themselves and their key people.

People are the most important asset in any business. If a person is lost to a business due to death, sickness or disability it will have a significant impact. An event like this can lead to a drop in revenue, loss of clients and could even lead to the banks calling in any debts or liabilities.

What are the benefits of income protection for the self-employed?
As a self-employed worker you are not entitled to workers' compensation. This scheme only provides payment for illness or injury that may arise out of employment and by law the self-employed do not meet this definition.

Income protection will generally cover up to 75% of your monthly income in the event that you are temporarily unable to work for a period of time due to illness or injury. It is paid out as a monthly benefit which you can use to pay ongoing personal and business financial obligations.

Premiums are tax deductible and you can also choose to fund these through your superannuation.

Why do you need life insurance if you are self-employed?
Being self-employed means that you not only carry the personal obligations associated with providing for your family, but also the business expenses that may need to be paid out in the unexpected event of your death. This includes any outstanding accountant, lawyer and adviser fees, Government taxes and any overheads relating to employee salaries, suppliers and lease payments. It's important to ensure the proper safeguards are in place so there is no risk to their estate.

A death in the business may also result in a change in the business ownership structure. If a business owner dies, their shareholding rights may revert to their estate. For the remaining business partners this may mean that they are now in business with people they have may have no intention of being in business with.

Life insurance if purchased as a stand-alone policy is not tax-deductible for the self-employed. However, income protection and business expense cover are both tax deductible as stand-alone policies.

As most businesses are unique, it's important to seek advice to assess your situation and work out the cover that best meets your needs.

i https://www.youtube.com/watch?v=REsTulSPuFY

Author: Arrow

Newsletter Sign Up


Our Investment
Beliefs eBook


Arrow Focus on Wealth Pty Ltd is a Corporate Authorised Representative (CAR) No. 270472 of GPS Wealth Ltd (GPS) , www.gpswealth.com.au , AFSL no. 254 544 and Australian Credit Licence no. 254 544, ABN 17 005 482 726 . For more information please refer to · Combined Financial Services and Credit Guide (FSG), GPS Privacy Policy , GPS Complaints Process
General Advice Warning:
The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.
Whilst Arrow Focus on Wealth Pty Ltd is of the view the contents of this website is based on information which is believed to be reliable, its accuracy and completeness are not guaranteed and no warranty of accuracy or reliability is given or implied and no responsibility for any loss or damage arising in any way for any representation, act or omission is accepted by Arrow Focus on Wealth Pty Ltd or GPS Wealth Ltd or any officer, agent or employee of Arrow Focus on Wealth Pty Ltd or GPS Wealth Ltd.
Tell a FriendPrintBookmark SiteSend an enquiryBook a consultation