As a business owner, your loved ones aren’t the only people who depend on you—your employees and business partners depend on you as well. Having life insurance is especially important for business owners, as it not only protects your family but also the business you worked hard to build. Learn why having life insurance is essential for business owners.
Why do business owners need life insurance?
As a business owner, income replacement and debt protection are extremely important; even more than they are for the average person. More than just your family is dependent on you, as your business and those directly connected to it are as well.
If your business has multiple owners, you can likely combine life insurance policies to work on a buy-sell agreement. This lets remaining business partners use the life insurance to buy out the deceased partner’s share of the business.
It can be especially difficult to replace your role if you’re involved in the day-to-day operations of your business. A life insurance policy is key to keeping your business running and to provide financial assistance to both your partners and employees in case something were to happen to you.
Personal Life Insurance for Business Owners
Your personal life insurance policy is fundamental in making sure your family is financially protected after you’re gone. When deciding on the type of life insurance, for many people, term life insurance is an easy way to create financial protection for loved ones at an affordable price, but for some people, whole life insurance is the right option.
It’s especially important to consider your business debts when purchasing your personal life insurance policy. If you took out loans to start your business, or used some of your assets as collateral, a life insurance policy will work as a safety net so that your family won’t lose its savings or assets that they rely on.
How to Buy Life Insurance as a Business Owner
Just like any other life insurance applicant, you’ll want to determine your coverage needs, which could include multiple policies. You may need at least one personal and at least one for your business. This life insurance calculator can help you get started on determining how much coverage you need both personally and as a business owner.
Let SelectQuote Help You Find the Best Life Insurance for Business Owners
For business owners, life insurance is a necessary protection to have for both your business and your family. You’ve worked hard to build a business to support your loved ones and you can make sure both are protected with life insurance. With so many options and different types of coverages, we can give you tips for buying life insurance as a business owner and help you find policies to fit all of your needs.