If you are a business owner, life insurance acts as a financial security for the people you love at the time of your death. Getting coverage for yourself would lessen some of your life's worries and will give you peace of mind that your business will be taken care of. So, the question is, what is the best coverage to take?
The following are some of the things you need to consider when looking for a life insurance policy.
To Take Care of Your Business and Personal Debts
You may get more than one term insurance policies of various amounts and durations, or get a single term life to help cover your debts and replace income. But ultimately, go for a term life insurance policy that is the same amount and duration of the loan.
To Replace Your Income
For most people, a term life insurance is enough to cover them for a certain amount of years. Basically, pick a term that can provide protection to your family for many years to come, such as your children's college education and household expenses.
To Help Your Heirs with Their Estate Taxes
For couples, a "second-to-die" policy, which is a permanent life insurance is a great choice. When the second person dies, the insurance pays out. It is effective as the couples that inherited properties from each other normally do not have an obligation to pay estate taxes.
It Helps to Equalize Your Business Inheritance
Even if not all of your children are part of your business, they are equal in the eyes of the life insurance. For example, if your son is helping you with your business, and your daughter is not. You still want to leave an equal inheritance to both your kids, but want your son to take over the business. A permanent life insurance policy will take care of that.
It Can Provide Financial Assistance in Buy-Sell Agreements
There are many business owners who go for term life insurance, especially if they do not have enough money. A permanent life insurance policy is an ideal choice if you plan to sell your company in a short time, for example, after 10 years. On the other hand, choose the permanent life insurance if you want to run your business for a long time, for example, in 20 years or beyond that.
There are many people who rely on your if you are running a company. Do not put them at risk by getting a life insurance policy. At Roper Insurance, our mission is to ensure that we protect are clients and offer them policies that they can afford. Learn more about our products and services by calling our agency at (828) 697-6709 You can also request for a free quote by CLICKING HERE.