4 Reasons To Get Life Insurance If You’re An Entrepreneur
Are you an entrepreneur? You probably think that life insurance is not necessary for your business. After all, how could something like life insurance benefit your company?
Trust us, it can help you on so many levels.
Since self-employed businesses lack the pre-packaged security of a corporate business, it’s up to you to make sure you have everything you need to secure yourself and your work. And that includes life insurance.
Here are five reasons why you should consider buying life insurance for self-employed.
Life Insurance for Self-Employed Owners Can Protect Your Business
Life insurance is not just about protecting yourself; it also directly affects your business.
When owners take out life insurance for self-employed businesses, they’re making sure that their company is protected from financial losses and sudden instabilities in the case of their death.
It’s also really helpful when your business is going through a rough patch, providing a short-term cash flow to keep it running.
1 – It Brings Peace of Mind to Your Loved Ones
Just like with personal life insurance, life insurance for your business brings peace of mind to your family.
This is especially important if you are the main or sole provider for your family.
If you pass away unexpectedly, a large part of your family’s income goes with you. Plus, depending on what shape your business was in before you passed, your family could be left with accrued loans and no way to pay them back.
That’s something you should not want to put your loved ones through.
2 – You Look Financially Secure to Your Lender
When your lender sees that you’re buying life insurance for self-employed purposes, it makes them happy. Why?
Because they have something to fall back on if you die prematurely.
It takes thousands of dollars in loans to get a business started, and lenders want to be sure they’ll get their money back.
That’s why most lenders (especially banks) require you to have life insurance in the event that you die before you’ve paid them off.
Having life insurance tells your lender that no matter what happens, they’ll still recover the money they gave you, and that brings them peace of mind.
3 – You Can Tailor It to the Needs of Your Business
Guess what? You don’t have to buy bulky, overpriced life insurance policies anymore.
You can decide how much life insurance you need based directly on the scale of your business. That means you can customize how much or how little insurance you need, and you pay that amount.
Pretty neat, right?
Admittedly, it can be a bit tough to add up exactly how much insurance you need, but thanks to advancements in business technology, you won’t have to go it alone.
Evaluating factors like the total amount of debt and income replacement is a good start to gather the information you need for your custom policy.
4 – It’s Easy to Set Up
It’s so easy to set up life insurance for self-employed businesses that you’ll be wondering why you didn’t do it sooner.
There are two types of life insurance: term and permanent.
Term life insurance covers a specific period of time – usually between 5 and 20 years. All you have to do is choose a “death benefit” (the amount your heirs are paid when you die) and choose how long you want coverage, and you’re set.
Permanent life insurance offers two things: insurance and investment. This is unique because unlike term insurance, you can place part of your premiums in your investment account and have your own funds when you policy lapses.
Of course, this means that permanent life insurance is more expensive, but the policy is there for your lifetime, so if you plan on being in business for the long haul, this may be what you need.
Both can be set up in mere hours, so it’s about that time you got to it.
Let’s Make It Happen
Hopefully we’ve given you enough reasons for why life insurance is so important to your business. Now, it’s about time you got your own.
This is a big step for your company, but it’s definitely worth it. Reach out to us if you need help to make things happen; we’ve got your back.
We look forward to hearing from you.