As an entrepreneur, it’s very likely that you have an optimistic approach to life, especially when it comes to your business, your ideas, your goals and turning them all into a reality. However, while this optimism is a hugely beneficial way to live, this does mean that many have neglected the fact that life can be unpredictable.
According to recent study, 41% of business owners and entrepreneurs do not have life insurance, which can cause notably complications. If a worst-case scenario does happen, have you considered the effect that this will have on your business, your legacy, your employees and their loved ones if you were to pass away?
Let’s be honest; entrepreneurs are risk takers. This is a trait that will have you led you to the success that you have today. This temptation of risk will naturally ooze into every aspect of your life, which makes accidents far more likely. However, if worst comes to worst, if the unexpected does occur, the business that you’ve worked so hard to build can fall in an instant.
Of course, your family, friends and loved ones are going to be hurt beyond belief for their loss, which only makes it natural that you should have life insurance in the first place, making sure they are well looked after when you pass.
Nobody wants their family to suffer a financial burden, especially on top of all the emotional distress they would be feeling at the time, and in fact, many years to come.
Furthermore, imagine your business is like a ship. If the captain was to fall overboard, the ship would be lost, out-of-control and legacy that your ship once was would be gone.
Why Is Life Insurance Important?
If you have life insurance policy or disability insurance policy the main purpose of these is to help cover any financial problems that may appear after you have gone. For example, you might want to ask yourself questions like;
If me, or another business owner, was to pass away or suffer from a permanent disability, who will then take control and ownership of the business? Likewise, who will handle the expenses of the business, as well as the daily, monthly and yearly cash flow for your family, your employees and, therefore, their families?
Consider your families, your employees and your employees’ families. Consider your business partners, your stakeholders and your investors. All these parties and people will be affected in the event of your death or permanent disability.
As an entrepreneur, you already understand how risk works and the fact that you have to expect the unexpected and prepare for the worst. After all, you probably have health insurance, car insurance, , home insurance, business liability insurance, so why wouldn’t you insure your own precious life?
Choosing the Right Insurance for You
Of course, once you start looking for life insurance online, you’ll soon come to realise that there are a ton of options out there for different purposes and reasons for existing. So, how can you make sure that you’re choosing the right one for you? Let’s find out;
Read Each Policy
Life insurance covers your death only. It doesn’t cover you if you contract a serious disease or disability. However, different insurance companies will define disability in a different way. This is why it’s so important that you read through each policy to see whether it covers you in the way that you want to be covered.
The Benefit Period
This is a term that relates to how long your benefit period pays out for. If you’re getting insurance for yourself in the event that you can’t work, you could pay for insurance for the next five years, ten years, or even until you’re 65.
Always bear in mind that the longer your benefit period, the more expensive your insurance premium is going to be,.
Perhaps one of the most important aspects you’ll want to consider is a policy that cannot be cancelled by the insurance providing you with the policy. Make sure you’re looking for policies that will stay with you for life without changing to avoid any unwanted complications.
As you can see, obtaining life and disability insurance is an essential part of being an entrepreneur for everybody’s sake, including your own. Make sure that you’re reading each policy carefully before deciding which one is right for you so you can be sure that you’re getting the right one for your individual circumstances.
Brenda Berg is a professional with over 15 years of experience in business management, marketing and entrepreneurship. Consultant and tutor for college students and entrepreneurs at Oxessays. She believes that constant learning is the only way to success