A top financial priority as a business owner should be the purchase of a life insurance policy. With so much at risk and no group policy to cover your family when they would need it the most, life insurance needs to be at the top of your list of business expenses.
As the owner of a business, you are ultimately responsible for protecting your family by protecting your business by insuring the most necessary part of that business – you. You may have the mind set that your business and personal life should remain separate, but you can’t delude yourself into thinking that your business will continue if you aren’t around to run it; this will likely leave your family in an extremely precarious position financially.
Your circumstances will vary greatly from other business owners, so sitting down with an experienced agent and your financial advisor to formulate the best insurance plan for you, your family and your business is highly recommended. Discuss your business as it is today, but also how you envision its growth over the coming years. Be sure you take a look at how you want to provide for your family in the event of your death.
The Importance of Life Insurance When You’re Self-Employed:
First and foremost, you will need life insurance to pay off the liabilities you’ve accumulated; if you don’t, the debt can become your family’s responsibility.
Next, your family’s personal expenses, should you pass, will need to be taken care of including your funeral, perhaps your mortgage, your children’s education, etc.
If you choose your life insurance wisely, you will provide your family with income and future business capital, not leave them with outstanding debt and no way of paying for household expenses.
Photo Credit: Leonid Mamchenkov on Flickr
Mon, Nov 16, 2009
Life Insurance, Small Business