The people for whom life insurance is the most important consideration are those people with dependents and few assets to support those dependents should the worst happen.
This is often the case for business people running their own small businesses. It’s quite common to find that such people are income rich, asset poor as they’re busy building their businesses in as tax efficient a manner as possible. They’re also often the busiest people around and don’t have the time to stop and think about what would happen to their families if something was to happen to them.
In the following article by JON RAMPTON you will find the types of business Insurance you never knew existed in present
5 Types of Business Insurance You Never Knew Existed
Insurance is one of those things that entrepreneurs hate to think about but know they need to have. Operating a small business without proper insurance can lead to big problems if your products cause some sort of harm to consumers or key assets get damaged or stolen. Since launching my small business I have been constantly looking for different types of business insurance. There are so many options out there so I decided to write an article to help everyone out.
Most people know about the major forms of business insurance: general liability, commercial property, etc. Depending on specific industry and business type, business owners might need to supplement general policies with policies aimed to help protect businesses from non-traditional, but very real, risks.
Here are five specific, more obscure types of business insurance that can be very useful both for a budding entrepreneur, as well as the most seasoned small business owner.
Business Life Insurance
Almost every organization has at least one person who is nearly irreplaceable. Especially in a small and growing business, there might be one person acting as CFO, lead salesperson, and hiring manager all in one. Such an employee has built up an incredible store of knowledge and expertise that is difficult to replace.
As horrible as it is to think about, if that employee were to die unexpectedly, it could put the entire business at risk. Business life insurance ensures that if a key employee does die, the company will have the resources required to keep the business afloat, satisfy creditors, and find a replacement.
This is a fundamental mistake. We need to stop and ask ourselves why we do what we do – driving ourselves on harder each day. If you stop to think about it, it’s almost always the same reason; we’re doing it to help those we love live as comfortable and enjoyable a life as possible thanks to our efforts in business. So it’s crazy, then, that so many small business owners don’t have adequate life insurance cover.
It’s a particularly acute need if you’re still relatively young, growing your business, and earning a decent amount – but you haven’t yet had the chance to build up a protective asset base.
These are the most vulnerable people for whom it’s definitely worth considering cheap term life insurance.
Term insurance differs from life insurance in that it’s for a set period – as the name implies. In this way, the life insurance rates are cheaper as the cover is for an agreed period. This may be designed to cover a period of financial vulnerability in your life, for example, if you’ve made a major investment in your own business – or if you just want the chance to have a little breathing space while you build up your asset base but want peace of mind should the worst happen.
Either way, you really need to consider life insurance. Always seek independent professional advice first – and be completely open and honest with an advisor and s/he should be able to steer you in the right direction.
Image Credit enhancedinsurance.com
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