Have you ever pondered what would happen to your business if you die prematurely without life insurance? Let’s give you a clue. Your employees bear the risk of not getting their monthly remuneration. They may even lose their jobs if none of your family members is interested in running the business. And even if your loved ones are interested in it, your creditors may want to sell your business to receive their loans. This could affect the income of your family and lead to the liquidation of the business which you’ve worked so hard to establish.
Scared of the thought? Not too worry. To safeguard against such hypothetical situation, we think getting life insurance is a good safety net for your business.
Why you need life insurance for your business
Just as you need life insurance for your loved ones, you also need life insurance for your business so that your enterprise can continue when you are no more. If your business is owned by multiple investors, you can decide to get a group life insurance. This type of insurance will help you and your business partners to save costs and to prolong the life of the business. On the other hand, if you are the sole owner of your business, you have lots of options at your fingertips.
You can decide to buy a term life insurance policy. This policy allows you to insure your life for about 20-30 years, and it is a perfect option if you are planning to retire from your business in the future. If you die before that term, your insurer will pay your company the death benefits.
Another option is to get a permanent life insurance policy like whole life insurance and variable. This insurance policy provides you coverage for life. Even though it is much more expensive than term life insurance, permanent life insurance allows you to borrow money from your cash-value account. Most importantly, with permanent life insurance, you have nothing to worry about – especially about your business welfare – when you are gone.