Do Business Owners Need a Million Dollar Life Insurance Policy?
Most people know about life insurance, and probably already have one. The controversy comes in the figures. Take a million-dollar life insurance policy for instance. Most people might think that the value involved is too large and that they probably don’t need it. However, when you factor in things like mortgages, family expenses, and other liabilities, you quickly realize that you need it. The question of a 1 million dollar insurance policy is even more complex for business owners.
As a small business owner struggling to take your business to the next level, you might be wondering, is this policy worth it? Are the 1 million dollar life insurance rates for company owners worth the investment? Well, the answer is yes. Not only are the rates within the reach of most business owners, but it is also actually one insurance policy that could help you take your business to the next level. For context, let’s go through a few reasons why business owners need a million-dollar life insurance policy.
1.To protect their income
Unlike an employed person who has some level of contractual guarantee of their income, a business owner doesn’t have this luxury. You have to work hard, beat the competition, and grow the business for you to earn. However, this is never a smooth ride. In most cases, you will find yourself oscillating between peak and low seasons. At other times, you might be forced to enter into credit just to secure a deal. In the worst-case scenario, your business might go bankrupt due to adverse market forces. Even with all this unpredictability, one thing remains constant, and that’s your bills.
Your family’s needs have to be taken care of even when your business doesn’t generate an income. It even gets worse if you die. Without a good insurance policy, you would leave your family exposed and suffering since they would have to pay bills, and at the same time try to keep the business alive to make ends meet. To save them from such problems, it would be best to take up a million-dollar insurance policy. This guarantees you an income even if your business goes south, or in the worst-case scenario, you die and your dependents are left exposed.
2.To secure a business loan
As a businessperson, you might need to seek a loan at one time or the other. For instance, if you want to grow the business without relinquishing equity, then taking a loan is the most practical option.
On top of that, there are times when you might find yourself in need to pay suppliers and other recurrent bills and are short of cash. In the case that your business goes down, loans taken for any of the above purposes can easily sink you and possibly force you into bankruptcy. For someone with a family whose bills are dependent on their business, this can be catastrophic to the family.
You can easily watch your family end up in the streets, with little to save the situation. It gets even worse if you die and your business is unable to service its debts. Your family would undergo lots of struggle and possibly take years before they recover. These are issues that you can avoid with a million-dollar insurance policy. In case of any eventuality and your loan becomes problematic, you would be sure that the insurance policy will take care of it. That’s the kind of peace of mind that every business owner should be aiming to attain.
3.To cover a mortgage
A home is one of the most secure investments that most people hold. Its value appreciation allows you to grow wealth passively while securing your family a safe place to live. That’s why both employed and business people take mortgages. However, due to the uncertainties of the business world, it is easy to find yourself on the wrong side of things and facing foreclosure. This would get worse if you die and your family is foreclosed while at the same time inheriting a struggling business.
To avoid such uncertainties and give your family peace of mind, it is best to take a million-dollar insurance policy. With such a policy, you can be sure that no matter what happens to you, or your business, your family will always have a roof over their heads.
All the above reasons are strong enough for a business person to seriously consider million-dollar insurance policy. It is an investment in your peace of mind, and that is priceless.