Income protection moved from fifth last year to third in priority this year, according to a Principal press release.
Over a quarter (26%) of the 511 business owners surveyed said the most important lesson to learn from the recession is the need to be more diversified with assets. In addition, 25% also learned that they need to have a plan for how they will exit their business. However, two-thirds (68%) of owners still do not have a plan in place to exit their business. Less than half of these owners (47%) have wills and 30% don’t have wealth transfer plans at all.
“We are seeing a lack of realism among business owners who in spite of their good intentions, are not following up with actions,” said Steve Parrish, national advanced solutions consultant for The Principal, in the press release. “Despite this, we are seeing a trend towards the realization that they need to act.”