Skip to Main Content

Start Of Main Content

Build a small business benefits package

Be a great boss to yourself! Learn how to build a sound benefits package in this video.

03-04-2019

Video Transcript

Chapter 4: Wait — I don't work for a corporation!

One of the biggest differences in being self-employed from working for a single employer is the need to create your own benefits package.

In this chapter, our panel of experts talk you through different benefit options and how to create a package that helps you plan and protect your future. You'll notice the worksheet summarizes four different insurance benefits for you to build towards.

Protect yourself and your future

Be a good boss to yourself. Make a plan to build a benefits package that allows you to take care of yourself now and into the future.

Health insurance helps to pay for medical expenses. If you elect for an option with a copay, you'll need to plan to pay a certain amount for every visit you make to the doctor. Another option is coinsurance — it outlines a percentage you'll need to pay after the deductible is met.

Life insurance is a great product that helps protect your business, pays off debts and leaves money to your loved ones. You have both term and permanent options with life insurance. Term insurance is temporary and is generally less expensive. Permanent insurance typically lasts the life of the insured and may build cash value. You could access the cash value that's built for some expensive life events — as long as you make sufficient payments to keep the policy in force.

Retirement planning helps you build for the future. Traditional accounts offer tax breaks up front, but you'll have to pay taxes once you retire. Roth accounts don't have upfront tax breaks, but you'll likely have tax-free withdrawals in retirement.

Disability insurance offers a huge relief by delivering income if you can't work because of a disabling illness or injury. The percentage of income replacement promised to be paid when you start to receive your payouts is called a benefit percentage.

This is a conversation you won't want to miss. Listen closely and make a plan to give yourself the protection you need.

Your chapter 4 checklist:

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.




844-317-3770

Also Important

4 Strategic Small Business Planning Tips

4 Strategic Small Business Planning Tips

Make a financial plan to help protect yourself from the biggest risks of business ownership.

Retirement Plan Options to Consider for Your Small Business.

Retirement Plan Options to Consider for Your Small Business.

Offering a retirement plan, including an IRA or an individual 401k, is a way to attract and retain employees.

Related Articles

Reaching Your Financial Goals

Reaching Your Financial Goals

Those goals don't have to be lofty or complicated. Keep them simple and attainable is the message here.

Real People, Real Dollars

Real People, Real Dollars

Questions, issues and stumbles related to money and budgets are often measured by one challenge at a time: saving for a house, paying off a credit card, even establishing an emergency fund.

Digital Tools to Streamline Your Insurance and Finances

Digital Tools to Streamline Your Insurance and Finances

Managing your money and insurance just got easier.