As someone who started an insurance agency from scratch I was often taken by surprise by the fact that as entrepreneurs, the old adage really hits home that “we don’t know what we don’t know.” Far too often, I meet with entrepreneurs who leave themselves, and their families, unprotected.
Entrepreneurship can be a rewarding and fulfilling career path, but it also comes with a certain level of risk. One of the most important considerations for any entrepreneur is protecting their loved ones in the event that something unexpected happens. One way to do this is by purchasing life insurance.
Life insurance is a contract between the policyholder and an insurance company, in which the insurer agrees to pay a designated beneficiary a sum of money (the "death benefit") upon the death of the insured person. There are a few different types of life insurance, but the most common are term life insurance and whole life insurance.
Term life insurance is generally the most affordable type of life insurance, and it provides coverage for a specific period of time, typically 10, 20, or 30 years. Whole life insurance, on the other hand, provides coverage for the entire lifetime of the insured person and also includes a savings component, which can be used to accumulate cash value over time.
Entrepreneurs should consider purchasing life insurance for a few different reasons. First and foremost, it provides a way to financially protect their loved ones in the event that something unexpected happens. This can be especially important for entrepreneurs, who often have more financial responsibilities than people who work for an employer. Additionally, life insurance can be used to provide funding for a buy-sell agreement in the event of a partner's death, allowing the surviving partners to buy the deceased partner's share of the business at a predetermined price.
Another potential benefit of life insurance for entrepreneurs is that it can be used as a means of accumulating wealth over time. Whole life insurance policies include a savings component that can be used to accumulate cash value, which can be borrowed against or used to pay premiums later in life.
Entrepreneurs should also consider purchasing life insurance as part of a comprehensive financial plan, as it can help with both short-term and long-term financial goals. In addition, it can be a good idea to purchase life insurance as early as possible, since the younger and healthier you are when you buy a policy, the lower your premiums will be.
Life insurance is an important consideration for entrepreneurs, as it can provide a way to financially protect loved ones, provide funding for a buy-sell agreement and be an important part of an overall financial plan. It's important for entrepreneur to weigh the options and consider their family needs, business plan and their future financial objectives.
For years before starting my insurance agency specializing in property & casualty insurance, my background was in life insurance. I received some of the best industry training from the top organizations with the very top companies. I have the ability to assist entrepreneurs in determining the correct amount of life insurance and the correct kind . . . always with top companies that provide the utmost in stability.
Let’s start the process by having a discussion about your plans and how you can best protect the ones you love, and what you’ve worked so hard for.
