Why Small Business Owners Need Life and Disability Insurance?
A lot of people, especially in these times are becoming entrepreneurs and start a business from time to time. However, some of them didn’t last long which posed a challenge. That is why life insurance and disability income insurance can be tools that help handle some of those challenges.
Here are three ways that life insurance and disability income insurance can help you as an entrepreneur.
1. It Protects your Family
A business takes investment and seed money to start and keep going. Many entrepreneurs put up their assets as collateral for business loans. Sometimes, those assets are central to family members as well. Always remember to prepare for the inevitable if your business didn’t thrive as you expected or if something happens to you. Such events could have negative implications for the home your family lives in or the retirement funds your spouse was counting on. That’s why life insurance for business owners is so important.
2. It Helps your Business Partners
Starting a business is at times a joint effort. Partnerships are forged to begin a business with each person bringing different talents and resources to the enterprise. In the near term, if you have business partners, protect each other and your families with life insurance and disability income insurance. At the very least, having a simple buy and sell agreement funded with term insurance is a must that lays out how a partner’s share of a business should be handled in the event he or she passes away.
3. Source of Capital
Certain types of permanent insurance, like whole life insurance, build cash value over time. This cash value can be used at any time and for any purpose. Protection is important, but cash value is a key component. Life insurance and disability income insurance are tools that lay the groundwork for when that business is thriving and the convertibility of that term insurance can be leveraged into deferred-compensation strategies and other wealth accumulation strategies,” said Gentry.
In the end, life insurance and disability income insurance can be versatile tools for entrepreneurs as they provide a useful financial option over time and be used as a benefit to both keeping the business going and protecting their families.
MBLIFE can help small business owners examine what may be appropriate for their business and plans that can suit their needs.
For more information, please visit Manila Bankers Life‘s website: https://manilabankerslife.com/products.html
