This post was written by Dylan Kohlstadt
If you own a business, you must protect your assets. Making sure that your loved ones are taken care of is essential, but you also need to ensure your business keeps running smoothly in the event of a tragedy.
Life is unpredictable. Risk follows us whether we’re at the office in a board meeting or spending time with family at home. When it’s a matter of life or death, it’s a wise idea to prepare. Life insurance is a rather morbid topic, but it could also be the missing piece in your financial portfolio.
With the right kind of coverage, business owners can preemptively act in their business’s best interests; individual employees and the company can receive financial support for unexpected emergencies. Depending on how policies are structured, your coverage plays an integral part in allowing your business to operate smoothly. In fact, the 2022 Insurance Barometer Study reports that 68% of life insurance owners say they feel financially secure.
But contracts are binding, and they can be tricky to navigate. You don’t want to get caught out. Here is a guide to life insurance, its benefits, and choosing the right coverage as a business executive:
As a business owner or executive, you need to trust the company and the life insurance policy you’ve chosen. The right cover can help to pay off business debts, supplement cash flow, and cover unexpected expenses in the event of your death.
Additional benefits of business life insurance include:
Business life insurance allows you and your business partner (or partners) to buy out each other’s business shares should one of you pass away. This coverage enables the business to continue running without disruptions.
Business life insurance also takes the pressure off your family members during an emotionally taxing time. Instead of worrying about your business, your loved ones can grieve, care for each other, and establish a sense of continuity in their lives.
With the right policy, your beneficiaries can receive a “death benefit” payout. This payout ensures that your loved ones are financially secure.
Data from LIMRA reveals the following are the most common reasons that Americans buy life insurance:
What are the consequences of not taking out a life insurance plan? Yes, insurance has a reputation for being admin-heavy, time-consuming, and stressful. When it comes to life insurance specifically, you’re actively paying your hard-earned money towards a financial contract from which you’ll never personally reap the rewards.
However, the consequences of not having a plan can be severe. Without life insurance, you may leave your family members in a financial crisis, with debts they cannot pay and no clear way to move forward. Your business could end up suffering and may be liquidated altogether if you’re the sole proprietor.
In addition, you could face the following challenges without life insurance:
The finer details of the life insurance policies should be discussed with an insurance agent or company.However, here is an overview of several types of insurance for you to consider:
Insurance companies will thoroughly evaluate your health and the risks associated with the contractual agreement to provide you with the best life insurance plan. When you sign the contract, the state of your health will determine how much your premiums cost and what kind of coverage is accessible to you.
Younger, healthier people typically have the lowest insurance premiums. You can expect to pay more if you have pre-existing health issues or lead a hazardous lifestyle, which is one of the many reasons why life insurance should be procured sooner rather than later.
Yooma Life Insurance provides an easy-to-use and customisable life insurance policy administration system to make it easy for you to access, edit, and communicate with your insurance broker about your preferred coverage.
Please consult us if you think we can help make your life easier now while helping you secure a better future.