There’s a lot to consider when running a business. As a business owner, you know how important it is to plan ahead and be prepared for anything. But do your plans include what will happen if you or one of your employees dies? While it’s not much fun to think about, it’s a possibility you need to take into account. If you pass away unexpectedly, you could leave a lot of problems for your family and business to deal with. With that in mind, here are six key reasons every business owner needs life insurance.
1. Peace of Mind For Your Family
If something happens to you, it’s not just your business you’ll leave behind. Your family will have a lot to deal with and shouldn’t have to worry about how they’ll manage without your income, or about paying for your funeral, especially if they do not have the savings to cover it. Life insurance takes care of this, so you and your family can rest assured that if the worst happens, they won’t be saddled with expenses they can’t afford.
2. Life Insurance Can Protect Your Whole Company
If you take out company life insurance, you’ll be creating a safety net not just for your family, but for your employees’ families too. Plus, you have options regarding how it’s paid out – insurance companies like YuLife, for example, give you a choice as to whether it’s paid as a fixed lump sum, or a lump sum based on each employee’s salary. Whichever you choose, your employees can be confident that their families will be looked after at a difficult time.
3. You Can Choose Insurance That Works For You
There are different types of life insurance policies, so you should compare them and choose the best life insurance in Ontario that suits you. The time frame and amount of money covered by the insurance are up to you, and you’ll be able to decide exactly who should receive that money if you die.
4. Life Insurance Can Help You in the Event of Your Business Partner’s Death
If a business partner died, could you afford to buy their share of the business? You and your business partners should consider taking out insurance on each other’s lives so that the business’ future is secure even if one of you were to pass away.
5. No Need to Worry About Taxes
You can ensure your family receives the full life insurance payout by choosing a policy that covers inheritance tax. There are also estate taxes to consider. You can help your family avoid this financial burden by doing your research when selecting your life insurance policy. You should be able to find insurance that deals with tax before the money reaches your family, making this sad time a little bit easier for them.
6. Debts Are Covered
If you have any debts, you may be under the impression that they’ll die with you, but this is not the case. Plus, if you and your spouse have taken out any loans together, the responsibility for it falls solely on them upon your death. Life insurance is an easy way to save your grieving family from unnecessary financial stress.