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Choosing an Insurance Advisor

Small business concerns
A small business owner needs reliable advice about insurance. Entrepreneurs have more complex insurance needs than a salaried employee. You may need insurance to cover the debt you have taken on in creating a business or to plan for succession of the business to a son or daughter. You may have a small workforce you would like to protect with insurance products.

Look at the big picture
Your insurance advisor has to look at the big picture when addressing your insurance needs. It's not enough to simply buy a standard package - your advisor also has to consider estate planning, retirement planning and long-term goals.

Make sure you have someone who has knowledge in life and health insurance, employee benefits, estate planning and other financial planning specialties of interest to small business owners.

A small business owner has many unique life and health insurance needs. For example, if the business has been successful and is appreciating in value, a heavy tax burden may arise on the death of the owner. Life insurance can be arranged to cover the tax burden and ease the succession to a new owner.

Individual and group insurance
The entrepreneur's business may rely on his or her own continuing health. Often the family home is mortgaged to cover start-up costs and retirement savings are compromised to invest in the business. With the advice of a life insurance advisor, the business owner can use insurance to cover these debts and plan for contingencies. See When the Risk is Yours alone.

When you begin to do well, your life insurance advisor can help you find a simple group plan to cover your employees.

“A bull market begins on pessimism, grows on skepticism, matures on optimism and dies on Euphoria.”