Maximizing Businessman Insurance

With a focus on strategy, operations, people, business development, and increased revenues, there is an opportunity for entrepreneurs to learn more about the power of protecting themselves and their families. A sudden death, stroke, or disability of a founder could derail or bankrupt a company. By taking necessary precautions to protect yourself and those potentially affected by your loss or inability to perform your role, you can better position your business for success. 

Businessman Insurance - While entrepreneurs are focused on growing their business, keeping themselves and family top of mind will be essential. The most important reason to purchase life insurance is to protect yourself and those you love. Also, if you have a business partner, a life insurance payout can help support the continuation of company goals and legacy should something happen to you. For example, critical person insurance protects against the death of a critically important employee. In the event of death, the insurance pays the owner or owners of the business. Establishing protection for yourself has to stay at the top of your priority list regardless of existing expenses. Part of an effective succession plan is to incorporate a financial strategy inclusive of the right type of insurance coverage. The use of digital valuation tools with the support of your insurance provider can help when determining plan type and coverage amounts. 

Having clarity around your options when evaluating life insurance is vital. If your budget is very lean and you are looking to protect your personal and business obligations, having term life insurance can help support your goals of minimizing costs. Term life insurance is a good idea for anyone who needs to cover a specific obligation or need, such as the years until a mortgage is paid off or until your children have graduated from college. Another example of how a term life insurance policy could be used is for funeral costs. You do not want to leave your family with financial burdens when they are trying to process how to handle your funeral arrangements. Term life insurance policies are a great option when initially pursuing a life insurance policy. 

If your business has scaled and you are looking to have a policy with a cash value and ways to leverage life insurance as an investment, you will want to consider a permanent policy. Life insurance as an investment option is not just for the rich. By placing an amount as little as $150 per month aside, this amount can compound over time and act as a substantial emergency fund when needed. Life insurance policies can also be flexible. The good news is that some term policies can be upgraded to permanent policies so that the policy can scale with the growth of your business. Determining how much coverage to purchase starts with understanding your debts and obligations. Having life insurance and naming your business as a beneficiary can help ensure that your policy covers the debts of your business. 

Part of growing and scaling a business is having access to funds such as loans to purchase equipment, pay staff, lease or buy property, and support the functions that help grow your business. Select lenders require that a life insurance policy is in place before the approval of a loan. An example of that would be a loan through the Small Business Administration. If your business relies solely on you, you may also be required to have a life insurance policy when seeking access to funds. Having life insurance helps the lender feel more secure about their investment in you should something happen to you. 

There are other variables that go into the pricing of your life insurance policy. Some factors that you will also want to consider are:

• Age 
• Sex
• Height and weight
• Current health conditions, such as high blood pressure 
• Family medical history, including cancer and heart disease 
• Extra-curricular activities that may be dangerous 
• Credit
• Driving history, including DUIs and speeding 

Being honest with yourself about the importance of protecting your assets and your legacy is vital when operating as a successful entrepreneur. The pursuit of knowledge around the benefits of life insurance, selecting the right policy, and revisiting policy types should be a part of your annual business strategy.