5 Reasons Why Life Insurance is Vital for Entrepreneurs
Dan Levenson July 14, 2020
Your business means stability and financial security. However, many entrepreneurs fail to take out life insurance, putting their businesses and families at risk in the event something unforeseen happens. LIMRA’s Life Insurance Barometer study revealed that 41 percent of business owners do not have life insurance covers. The sudden death or disability of a key member of a business can end up derailing a company, lead to bankruptcy, or even cause a total collapse of what you’ve worked so hard for.
There are 3 key issues to consider while deciding on the best insurance policy for your business:
- Does the insurance policy provide support to the business in case of an accident or death?
- Does the policy take care of liabilities related to the business?
- Does the policy provide support to the family of the entrepreneur in case of sickness or death?
Here we address 5 reasons why you need life insurance cover as an entrepreneur.
Ensure business survival
Life insurance caters to financial needs in your absence. Considering the effort and time you have dedicated to your business you and your family cannot afford to lose it. With life insurance, your brand can continue to provide.
Protect your family
Life is unpredictable. Unfortunately, death and disability can occur without warning. leaving your family in a situation of financial uncertainty. Life insurance can ensure those you care about continue to benefit from your business even after you are gone. In any case, you will be at peace knowing that the lifestyle of your loved ones does not have to change just because you are absent.
Increased traditional lending opportunities
Life insurance may be used as collateral.
Often, financial institutions are reluctant when it comes to lending money to new businesses. Of course, the early stages of a business are often when your need for financial assistance is the greatest. This financial problem can be solved by having life insurance; with it, you have collateral security that you can use to secure a loan and help bring your company up to scale.
Protect your employees and partners
A wise entrepreneur not only considers the future of his family, but also those of their partners and employees. There are many people who depend on you for their livelihoods. Comprehensive life insurance can ensure that your business and employees will continue to survive.
Paying off debts
Many companies take out loans in their normal course of operations. In your absence, these loans will still have to be paid. Without life insurance, it might be difficult to keep up with every debt you have. Mounting debt can ruin your business and put your family and employees in financial troubles. Life insurance can help take care of your financial needs, and as a result, keep your business up and running.
Life insurance is vital for entrepreneurs. At InsureYourCompany.com, we help individuals and business secure insurance for their personal and business needs. Contact us to learn more about our services!