Insurance Services of Washington Blog
The list of people relying on your income grows steadily as your business expands. These include your staff, family members, business partners and their families. As a responsible business owner, you cannot neglect their needs. Furthermore, you don’t want to be responsible in putting them in a financial risk if something happened to you.
Getting life insurance when you own a business should be a priority as you are protecting multiple families, not just your own. Here are some reasons why life insurance is essential for business owners.
It Can Replace Your Income
In the event of your death, life insurance can replace your income without delay. This means that your immediate family members will not be left looking for extra jobs just to make ends meet. They can use your payout to fund important expenses like mortgage, food and education. Your term life insurance will be able to cover your years of finances for your family or even pay your children’s college tuition.
Protect Your Business for Going Bankrupt
Businesses always comes with debts and you cannot pay them off once you’re gone. You should know that the interest rate for debts keep on getting bigger each year and it can take out a whole lifetime of savings if left unpaid. You don’t want your family to suffer and watch your business go bankrupt when you die. A life insurance policy that corresponds to the amount that you borrowed is your best option if you have plenty of business debts.
Equal Inheritance for Your Children
Having plenty of children also means having to divide your inheritance equally when you pass away. If you have very young children that were not able to help you with the business, they too should have a share of it. With the right life insurance policy, you can rest assured that your children’s inheritance is well taken care of. This amount includes your subsidiaries and other assets.
Funds for a Buy-Sell Agreement
A buy and sell agreement is a great option if you have several business partners who’d want to take over the business once you’re gone. There are life insurance policies for business owners that provides them with some cash to buy the share of a partner that passed away.
Your business is something that is part of your life and family and many others’. You need to think of its future and plan accordingly. At Insurance Services of Washington, we offer flexible insurance policies that cater to the needs of your business. You can get more information about our products and services by calling our agency at (425) 868-1123. Get your free quote today by CLICKING HERE.