If you are a business owner or are starting your own business, then you have a great need to protect your investments. When you own a business, you have a family, employees, and maybe even partners who are depending on you for their livelihoods. You have many responsibilities. You want to make sure that you have the financial planning in place to protect these people in case something happens to you.
Why is life insurance important when you own your own business?
Your family probably depends on the income from your business to pay the bills and put food on the table. You may have loans that that were taken out to start your business and must be paid back. In very difficult times, your family might be forced to sell the company or lose the house to settle debts. There may be no one equipped to take over in your absence, or the business may be hard to sell. There are many scenarios that may put your family in dire financial straits.
Life insurance could save your business and protect your family’s financial future. Life insurance could pay off any debts and cover your family’s living expenses. As a business owner, you may need several different life insurance policies.
What type of life insurance should I get?
This is a great way to protect your family for a specific amount of time. This type of insurance pays a guaranteed benefit in the event of the insured’s death during a specified term. Typical term lengths could be 10, 20, or 30 years. It comes with an end date, but it is also the more affordable option and the easiest to understand. You might purchase term life insurance to help supplement your income until retirement, until your kids are grown, or to make sure the mortgage gets paid in full.
Learn about Term Life Insurance
This lasts you for the rest of your life, unlike term insurance. While it can be more expensive, it has several attractive advantages. This type of insurance comes with fixed premiums, meaning your monthly payment is locked in and will not increase as you age. Your policy will also build cash value over time that you can borrow against tax-free to help you fund your retirement, for instance, or your child’s college fund. Consumers appreciate the benefit of forced savings, as well. And as long as you’re paying the premium, you’re covered if you die tomorrow or you live to be a hundred and twenty.
Learn about Permanent Life Insurance
This is often considered to be the best of both worlds. This type of life insurance gives you the opportunity to have life insurance coverage and also save money for the future. It builds cash value over time much like permanent life insurance does, and you can take out a policy loan if needed. The premiums are flexible, meaning you can change the existing policy to make it more affordable while keeping it in force and continuing to build cash value. And as long as you’re paying the premium, you’re covered for the remainder of your life.
Learn about Universal Life Insurance
I’m ready to start protecting my financial future.
Find an Agent