Why Business Owners Should Get Life Insurance

As a business owner, you may find that you’re constantly caught up between making decisions and looking for ways in which you can make your business more successful. Amidst all the chaos and planning of making sure that your business is financially viable and an ongoing success, have you stopped to think about what would happen if you were no longer here, or if there were no one else to take over the business reigns?

Life is wildly unpredictable, and none of us know what the future holds. As a business owner, it is important that you not only hold responsibility for yourself, but your family and friends and employees in your business. With that in mind, let’s take a look at some of the reasons why business owners need to get life insurance.

Why Do Business Owners Need Life Insurance?

Life insurance should be seen as a vital tool for business owners. Whilst it (hopefully) never needs to be used, it provides financial protection and security in the event of an unexpected or sudden death. This then allows family members, employees and loved ones to be taken care of following the wishes of the business owner in an already difficult time. However, it’s not just for protecting your loved ones or key employees, it’s also about protecting your business. Life insurance can cover any outstanding loans, debts and payments that the business may hold, or cover costs that may be associated with the closure of your business or the transfer of ownership.

Different Types Of Business Life Insurance

Keyman Insurance

Life insurance is just as important for business owners as it is for individuals who might take out insurance coverage to help provide financial support to their loved ones. But business owner life insurance, better known as keyman insurance, could be the insurance you need to keep your company protected should an important person within your company become seriously ill or pass away.

Keyman insurance policies will usually cover one pivotal or key person within the business, such as a founder or CEO, or an employee who has skills which are crucial to the ongoing success of the company or who would be difficult to replace.

Group Life Insurance

Group life insurance is a way of offering life insurance, or perhaps critical illness cover, to staff members where each individual has the same terms. The business will buy the cover as a group scheme as it is likely there will be group discounts.

More and more businesses are beginning to offer life insurance as a company benefit to their employees and it can be a good way to cover and retain valuable employees. Staff who take up the offer of business-provided life insurance will find that, in the event of their death or diagnosis of a critical illness, then a payout is made to help support their loved ones.

Relevant Life Insurance

Relevant life insurance is an affordable way for businesses to set up individual benefits for members of staff in businesses that might be too small to consider a full group policy. The business will take out a relevant life insurance plan for an employee, which can be tailored to meet specific requirements. This type of insurance is designed to be a cost-effective solution for employers to arrange an assurance on the life of key employees, including directors.