Life Insurance for Small Business Owners – Get Affordable Premium
If you own any type of a business, you are probably afraid of what will befall the business in case you cease to exist. A business that is leaned on by many customers and clients should be earmarked by life insurance to support its continuity, in the event, the owner dies prematurely. Small business owners are fond of pushing the process of taking insurance cover at a future date, of which is not recommended because you never know when and what may attempt to halt the business.
Choosing an insurance cover that will inherently fit a small business owner is obviously different from that of a large business. Meaning, the amount paid for small business insurance is different too. Mostly, those owning small businesses are self-employed. They have a reason to smile because insurance companies are at their disposal. We have several companies that guarantee to offer life insurance for self-employed people. There are several things a small business owner has to put in mind before going for the insurance.
Consider the Types of Insurance Policies
Basically, we have two types of life insurance policies: permanent and term.
Term life insurance is a very simple option. You have to specify the amount heirs are to receive and for how long. Life insurance for small business owners is critical on its own, and we need to make wise decisions while selecting an insurance policy. Term insurance is a straightforward policy, which is best suited for most small business. For example, you can choose a $700,000 policy for a 20-year term. This means that if the unexpected occurs, $700,000 will be given to your heir(s) within the 20 years. It is as if they will be entitled to some kind of periodic salary long after you are dead.
Life insurance for small business owners is made even more convenient when other members will be retiring at a future date. For instance, imagine a situation where Ken and Morten are partnering in a small business. They agree that one of them will buy the entire enterprise in the event the other partner dies. If Ken dies prematurely, Morten is eligible for a term insurance compensation, which he will authentically use to pay Ken’s heirs to receive the other half of the enterprise. In as much as term insurance is simple and very direct, the conditions usually turn to be the opposite as we age. We recommend the other type of insurance policy, the permanent life insurance because, term insurance tends to be expensive, as we grow old.
Permanent Life Insurance for Small Business Owners
A permanent life insurance serves as the best life insurance for small business owners when perfectly implemented. This insurance is double-edged in that; the premium you pay is partly used in insurance and partly in the investment. Unlike term insurance where you walk away empty-handed after paying the premiums, permanent insurance has the investment part that lets you walk away with something after the policy is over. The cost of permanent insurance is more than that of term insurance. But it is worth because the policy can stay in force for the rest of your life, as long as premiums are paid according to the agreement.