Type of Insurance | Importance | Benefits | Disadvantages | Possible Tax Benefits |
Life Insurance | Financial protection for your family and business in case of your unexpected death | Helps pay off outstanding debts, such as mortgages and business loans, and maintain business continuity | Premiums can be expensive if you’re a smoker or not healthy | Premiums are not tax-deductible |
Disability Income Insurance | Provides income replacement in case of an unexpected disability | Helps cover daily living expenses and maintain a source of income while you recover | Premiums can be expensive if you’re a smoker or not healthy | Premiums may be tax-deductible as a business expense |
Health Insurance | Protects your finances in case of unexpected medical expenses and improves access to medical care | Puts a cap on amount of out-of-pocket expenses you may have and helps you stay healthy with wellness benefits | Plan options may be limited in your area, depending on where you live | Premiums paid for health insurance may be tax-deductible as a business expense |
Critical Illness Insurance | Provides a financial safety net in case of unexpected medical expenses | Covers lost income and caregiver expenses and helps maintain your financial security | Premiums can be expensive if you are a smoker or unhealthy | Premiums are not tax-deductible |
Key Person Insurance | Helps ensure business continuity and provides financial security for your business | Relieves stress and strain if you lose your business partner knowing you can replace that person | Premiums can be expensive if the key person is a smoker or unhealthy | Premiums paid for key person insurance may be tax-deductible as a business expense |
Long-Term Care Insurance | Protects your finances in case of unexpected long-term care needs and provides peace of mind knowing that you and your loved ones are covered | Helps ensure that you have access to quality long-term care services when you are unable to care for yourself on your own | Premiums can be expensive and the coverage may have limitations or exclusions | Premiums paid for long-term care insurance may be tax-deductible as a medical expense |
Group Health Insurance | Helps attract and retain quality employees and provides a safety net for employees if they become ill or injured | Helps employees access medical care & stay healthy without worrying about the cost | Plan options may be limited in your area, depending on where business is located | Premiums paid for group health insurance may be tax-deductible as a business expense |
Group Long-Term Care Insurance
| Helps attract and retain quality employees and protects your employees’ finances in case of unexpected long-term care needs | Provides peace of mind knowing that your employees will have care if they need it | Premiums can be expensive depending on the ages of the employees, and the coverage may have limitations or exclusions | Premiums paid for business long-term care insurance may be tax-deductible as a business expense |