As a business owner buying life insurance is one of the most important financial decisions you will make. Although many people focus on the coverages and monetary aspects of life insurance, this protection is a long-term financial commitment for most owners. You should want to learn more about the different kinds of life insurance policies before making your final decision.

When it comes to purchasing life insurance, it’s important to keep a few variables in mind. Business owners should consider several key factors, including the type of coverage they’re looking for, the duration and cost of the policy, and whether or not the policy is going to have an impact on individual tax deductions.

You’re an entrepreneur. Your life is made up of important moments and equally important decisions. Make sure you protect yourself against the most tragic moments that can occur for small business owners. This protection can come in the form of critical illness insurance (CCI) and Disability Insurance (DI) coverage. You can also buy a personal life insurance policy that will help cover any business debts that may occur in the event of your untimely death.

What does it mean to “buy life insurance”, and why would you want to do this? What are the pros and cons of doing so? Let’s explore this topic in a bit more detail.  

“The value of life insurance varies by up to $20,000 depending on the type of coverage and the age of the policyholder. But the average premium for single coverage is just over $2,000 per year and doubles for successive policy years. Thus, a $3 million policy goes from worth $1.5 million to $2 million in 10 years.” — Mark Moore, Insurance Agent.

As a business owner, it would be helpful to consider purchasing additional coverage that can cover in case of business interruption or other unforeseen illnesses. Because you possibly won’t be able to work, having coverage that can cover your business while you concentrate on getting better can be helpful.

“Individuals are 10 times more likely to develop a critical illness than they are to die prior to age 65.  Critical illness insurance pays a tax-free lump sum benefit after the diagnosis and survival of a covered illness. Many insurance companies offer coverage for at least 20 major illnesses, with the main ones including cancer, heart attack, and stroke. The insured can use this benefit any way they please.” — lifeinsuranceadviser.com.

As a business owner, you might not go through these kinds of life-threatening instances every single day, but having coverage that will cover you in the case of a catastrophe could be a great asset.

Talk to an advisor today. Hull Life Insurance Corporation specialise in helping entrepreneurs get the best policies for their unique needs.

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