Everyone hopes their families will prosper long after they’re gone. The same likely applies to your business. Everyone hopes their families will prosper long after they’re gone. The same likely applies to your business.
Did you know that the life insurance funds from your unexpected passing can be used both to support your business and your family? Even if the worst happens, your legacy can still be protected.
As a business owner, you have a ton of options to do so — but with small businesses ranging from side hustles to multimillion-dollar operations, we can all agree there is no “standard” entrepreneur. So, what’s the best fit for you?
First, consider how much coverage you need. Entrepreneurs have to protect both personal and business obligations. When you pass on, your debts don’t go away. Life insurance offers financial stability to your family and business during an important time of transition. To calculate your needed life insurance coverage, consider all of your personal debts as well as a few years’ worth of outstanding business costs, including:
- Lease or mortgage on business property
- Credit debts
- Outstanding loans
- Payment due to employees or contractors
- Income or sales tax obligations
If debts aren’t paid, your family may be required to pay them from your personal assets, depending on your business structure.
Second, consider your budget. If you’re looking for solid protection at minimal cost, you’ll want term life insurance. But if you have the funds to pay higher premiums, a permanent policy with cash value could be worth looking into. You can also buy multiple life insurance policies to cover your family, business, and other beneficiaries separately.
We hope these tips help! But if you’re an AFEUSA member, you won’t have to go through all of this on your own. We’ve partnered with Answer Financial to give YOU top-rated, comprehensive, customizable insurance plans for every need. Don’t wait and join our family today — we’ll help you protect yours.
Article by Charles Jackson, President of AFEUSA