Opening a family business brings with it a fair share of personal responsibility. Among a myriad of choices for you to make, one of the most important is life insurance. Your family, employees, and your future are all dependent on the plan you choose. With your entire livelihood to safeguard, what are some tips you can use to help shoulder the burden of choosing your ideal insurance? What are some of the benefits you can look forward to?
Employee Assurance: Few companies can offer comprehensive coverage for their employees. Far too often workers will take a lower wage job if it means insurance. Life insurance is especially rare for the average employee, so offering it can mean the difference between an employee who looks elsewhere, and one who stays for the long haul.
Safety Net: The purpose of life insurance is to protect your loved ones should the worst happen, and that possibility doesn’t change when you own your business. Protecting yours and your employees families not only sends the message that you’re meticulous in your organization but a caring manager.
Estate Tax: When your business starts to earn and flourish, your success can cost you additional funds from the government. Estate Tax is one of those additional expenditures that can cost your family big and even lead to their needing to sell off your company in the event the worst should happen. The payout from a life insurance policy can help manage those payments and prevent the need for any drastic action like selling the family home or business.
Debt Relief: For many, starting their own business comes at great personal cost. Whether that means taking out a series of loans or a second mortgage, few are able to join the entrepreneurial ranks at little to no cost to themselves. In the worst-case scenario, an unexpected loss of a family member, let alone the main earner can be a tremendous blow to your family. Though you may be gone, your debts tragically remain intact. Should you want to spare your family the process of parceling out your company to shoulder this burden, life insurance can prevent even more grief.