When considering starting your own business, you were probably astonished by what you could achieve, including more flexibility, happy clients, and earning potential. But, later on, you might focus your ideas on what might be wrong. Insurance is here to aid you.
Your business depends totally on you as a small business owner, entrepreneur, influencer, or freelancer because you are your business. It is good to know that insurance is there to help you if events take an unexpected change. You’ve probably considered a general liability or business insurance, but what about Disability and life insurance?
- Mainly, Life Insurance gives peace of mind to your business and everyone who relies on you – employees, family members, and customers in the case of your demise.
- Similar to Disability Insurance, it provides money if you are in a position to work due to an injury or illness.
Why Entrepreneurs Need Life Insurance
Small-scale business owners are accustomed to being busy and managing a busy schedule. But occasionally, stepping away from your “doing” role and taking on your strategic planning position is necessary. Although it’s not on anyone’s to-do list, strategic thinking must include planning for the worst-case scenario.
Freelancers and entrepreneurs form the driving force behind their enterprises. They drive expansion, care for clients, and encourage their employees or colleagues. What happens to their businesses and all those they support if a significant individual dies?
A sound investment option that could aid in preparing for a loss in a person’s life can be life insurance. Life insurance is a way to ensure the business can ensure the continued success of its industry even if you’re gone.
In this scenario, there are several options to utilize life insurance to help support your small-scale company. Here are some essential guidelines to take into consideration.
Insurance for Key Person
Insurance for a critical person is a life insurance policy that pays when a key employee or owner dies. The business purchases the procedure, and the profits of the benefit at death are given directly to the company.
It’s important to remember that having personal insurance is an invaluable tool when a company needs to replace a key employee, sell a company, or move on to something else.
Agreement Buy/sell
Purchasing or selling your company is an option if you’re a business partner and your family is unable or unwilling to continue it in the case of your passing. Suppose your company has more than one owner; the Buy/Sell Agreement is another option to limit the risk of the death of a crucial partner. Entrepreneurs can use life insurance to finance the Buy/Sell arrangement. The cash benefits then allow the owners of the other companies to purchase the interest of the deceased partner from the remaining family members.
Life Insurance for Individuals
In addition, even if you don’t have co-owners, it is recommended to think about the purchase of a life insurance policy to protect your debts as well as obligations. If you pass away, your family will receive an incentive to generate revenue. If they decide they do not want to run the business themselves, they can sell it or shut it down.
Entrepreneurs’ Disability Insurance Considerations
Another primary concern for entrepreneurs is: what happens if you don’t die but become disabled? You depend on the hard work you put into your business to pay expenses. Therefore, small-scale business owners like you need protection from disability insurance. This insurance could, at the very least, pay a portion of your missed wages if you get sick or hurt.
Employee Vs. Entrepreneur Disability Insurance
Injuring occurs to one out of every four people at some point in their working lives. Given these probabilities, whether you’re an employee or an employer, disability insurance will likely become mandatory for all workers.
Disability for Employees
Most often, companies provide employees of their company with long-term disability insurance for a specific percentage. They can then purchase additional disability insurance to protect them even more. In addition, companies offer or subsidize temporary disability insurance policies to their employees.
Disability for Entrepreneurs
Since there are no corporate subsidies, many entrepreneurs believe disability insurance will cost too much. On the other hand, entrepreneurs with small businesses, particularly freelancers, artisans, and solopreneurs, must purchase and pay for the disability coverage they require. But, there are different prices for various insurance policies on Disability. A professional insurance agent is in a position to assist you in finding the one that meets your budget and needs.
Suppose you’re a business owner that doesn’t have disability insurance or believes you don’t possess enough disability insurance. In that instance, the first thing you need to do is calculate how much you’ll need. Next, speak with a qualified insurance specialist to discuss your coverage options.
The Conclusions
Our nation’s entrepreneurs and small-business owners are the backbones of our economy. We need to protect their enterprises as much as possible, and life and disability insurance are helpful tools.
Suppose you’re an influencer, freelancer, or business owner; you owe to yourself to ensure the security of what you’ve worked so hard to build. The ideal first step is to speak with an insurance expert who can evaluate your insurance needs and determine which plans suit your particular situation.
Ottawa Life Insurance is to assist you in obtaining your life insurance needs. We are ready to help you with your personal and business insurance needs. For further information, call (613) 454-1424 or email info@ottawa-lifeinsurance.ca.
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