If you and your spouse have decided you want to start a business together and you are working on getting a business loan, there are a few things you'll want to do to protect yourself financially. Starting a business can be an exciting time, but you have to be aware that 80 percent of businesses aren't able to get past the 18 month mark.
There are a few different things you can do to prepare your family financially in case the business doesn't end up succeeding, or in case something happens to you or your spouse. Here are a few things to consider.
In case you aren't able to keep the business going and you have to close things down, you want to have unemployment insurance. The insurance can work to provide you with money until the two of you are able to get more work, so you don't end up broke with no money to live off. It can be hard to draw unemployment if you haven't been paying money into the government because you are self-employed, or because you weren't taking any money home.
Each of you should have life insurance that would cover the cost of the business loan at each, so one of you doesn't get stuck with a huge amount of debt if the other one passes. If you already have life insurance, boost your policy up so that it provides you enough to live off of for at least a year, and so it also covers the cost of your business loan. A life insurance expert can help you determine how much you need.
An unexpected illness or accident or injury can end up costing you thousands of dollars with or without medical insurance, but it's best to have health insurance if you are self-employed. You should both get health insurance even if you don't offer it to your employees, so you don't go into debt because of an outpatient procedure or for annual checkups and screenings.
If you are going to start a business there are a lot of risks, and there can be a lot of rewards. Talk with an insurance agent about getting these different types of insurance coverage, so you can protect yourself, your spouse and your children from any problems that may arise while you try to get the business up and running. Click here for more information on insurance coverage.