Many people consider life insurance a luxury. They don’t see it as being important because they can’t use it while they are alive. However, that doesn’t make it any less important. Do you care about your loved ones? Do you want to leave them responsible for your debts, funeral costs, and other expenses? There is also a chance you may leave your family with a reduced income which could make things very difficult for them. These are common reasons why everyone should consider purchasing a life insurance policy. But one reason you may not have considered is to protect your business.
Are You a Business Owner?
Owning a business is a great accomplishment for any individual or family. You get to be your own boss, make your own rules, and hopefully reap most of the rewards from your company’s endeavors. While there are many positives to owning a business, there also comes many obligations as well. Do you have a lot of overhead? As you know operating a business requires increases expenses, which is why you should consider protecting them with life insurance.
Most people that open a business or are working to grow and expand take on debt to do so. Taking out a life insurance policy can help payoff that debt in the event of your death. One important thing to note, if you are a sole proprietor, your business and all its debts will be left to your family. So, whether your business will be kept or sold, your loved ones will be able to reap more of the proceeds.
Do You Have Business Partners?
If you have business partners, it would be ideal for all of them to get a life insurance policy as well. Many smaller businesses have agreements in place that organize the transfer of ownership from the deceased to the surviving partner(s). The loss of a business partner could leave you and the reaming partners left with more financial obligations which could hurt the company, and even force it to close. When a partner purchases a life insurance policy, they will need to leave the death benefit for the other business owners so that the benefit goes to the business.
Do You Rely on Key Employees?
While owners and partners share an important role in the success of a company, there are also key employees that you may rely on as well. These could be sales people, managers, creative personnel, and even administrators. The sudden death of a key employee could impair the operation of your business. To protect your company from that, you can take out a key employee life insurance policy that will pay your company a benefit if something were to happen to said employee. You will be responsible for the premium, and how much coverage you would like to take out. You may also be allowed to borrow against the policy, and use the benefit any way that would benefit the business.
Keep in mind that life insurance doesn’t replace someone’s income, value, or even an employee. It will only offer a one-time benefit to get you, your loved ones, or your business through a difficult time and situation.
There are many things to take into consideration when making the decision of which type of policy is best for you, your family, or loved ones. For help trying to figure out which policy is best for you, read our previous blog, “What Are My Life Insurance Options?” Are you interested in purchasing Life Insurance or International Life Insurance? Would you like some more information regarding Life Insurance options that are available to you? Would you like to ask some questions to a Life Insurance expert? If the answer to any of these questions is yes, please contact us 954-828-1819 or visit us online at mhginsurance.com and talk to one of our insurance specialists for help in selecting Life Insurance and other coverage to ensure that you and your loved ones have the protection you need at every stage of life.