When you run a small business, whether a company of 2 or a company of 200, you wear a lot of hats, you have a lot of things to take care of, and every major decision funnels through you. That is a lot of pressure. When it comes to your business, it’s important to ensure you have adequate coverage in case of an unexpected loss, critical illness or period where you cannot work due to disability.
Term Life Insurance
Provides coverage for a set period of time. Generally, 10 to 20 years, although it can be longer. Initial policy cost is lower than permanent insurance.
Whole Life or Permanent Insurance
Provides comprehensive coverage guaranteed to remain in force for the insured’s entire lifetime, provided required premiums are paid. In addition to the death benefit, whole life insurance contains a savings attribute whereby the policy may accumulate a cash value plus a loan value. Also, it has a death benefit that increases over time.
Your business does not stop if you get sick, but having the right coverage can help protect your business when you have a plan in place that spells out exactly what would happen if you have to leave during this important stage. You have the peace of mind that your business will not suffer.
Disability or Critical Illness Insurance can provide a cash injection to keep you in business and your plans on track.
- Fund existing expenses such as rent or a Mortgage.
- Have additional resources to cover for prolonged illness.
- Travel costs. Private treatment facilities. Personal expenses.
What would happen if you became seriously ill, disabled, or suddenly died?
- Profits may be affected.
- Increased costs to replace key team members, including training.
- Business operations, including credit withdrawal, suppliers confidence, and loss of customers
Being an entrepreneur doesn’t mean being without insurance. Without the right insurance policy, you run the risk of your business suffering while you are absent due to illness. If you want to leave a legacy for your family and your employees, you must have the right life insurance policies in place to make the transition successful.
If you would like to learn more about life, critical illness, or disability insurance, contact us today. To find out how life insurance can help your business, download our handbook on Life Insurance for Entrepreneurs here.