OVERVIEW

Many people entering into business on their own are coming from a corporate environment in which they were provided by their employers with generous "fringe" benefits. Typically these include group life insurance, some accidental death and dismemberment coverage, dependent life insurance, short and long term disability income replacement insurance, extended medical coverage, and a dental insurance package. Suddenly on your own, these are difficult benefits to do without.

When starting or buying a business, the first priority has to be survival of yourself since, if you don't survive, neither will the business. If you need these benefits, you had better get them. But look before you jump.

Whether sponsored by an employer, a chamber of commerce, a union, or a professional organization, all group benefit packages are underwritten by an insurance company, or a group of insurance companies. They are in it to make money, at least break even, definitely not to lose money. For this reason, you really have to take coverage you may not want or need (which make money for the insurance company) in order to get coverage you do want or need (which usually lose money for the insurer). A benefits package is exactly that, a package.