When you are running your own small business, you are never short of things to worry about. That goes double for anyone who has been running a small business during the Coronavirus pandemic. You will have been through the ringer, dealing with everything from lockdown closures to furlough schemes, figuring out if your team can work from home safely and making sure that everyone stays safe and healthy.
If you have made it to this point with your business still intact, then you have achieved something pretty remarkable.
Life insurance. Photo: Tumisu / Pixabay
Credit: Tumisu / Pixabay
But it is also important to note that the pandemic has shown us all just how important it is to plan for all eventualities, no matter how bad they might be. Life insurance represents something that most of us would rather not think about. The idea that not only that we, or the person we are helping to secure the policy for, might pass away unexpectedly, but that if we don’t do something about it, there is a good chance that our family will find themselves in financial difficulty. Here are a few reasons why you should seriously consider life insurance if you are the owner of a small business.
Life Insurance Gives You Peace Of Mind
Let’s start with a simple one, shall we? One of the most important reasons why anyone would take out life insurance is because we don’t know what’s going to happen. We can have incredibly carefully made plans, we can lead a healthy and active lifestyle, and we can drive safely and avoid high risk and high stress scenarios. But there is always a chance that the unexpected might happen.
As a small business owner, you know all about responsibility, and you will also be familiar with those things that keep you up at night. A good life insurance policy isn’t just good common sense, especially with the world the way it is right now. It will give you peace of mind, knowing that you have taken steps to secure the future of the people closest to you in case something happens to you.
Life Insurance Policies Can Be Tailor Made For Business Owners
Anyone who has taken any form of insurance out before knows that there’s no such thing as a simple, standard policy. When it comes to insurance providers, a lot will depend on your age, your lifestyle, your job, smoker or non-smoker…all those bits of information that you provide which can nudge your quote one way or the other. When it comes to the person taking out the policy, there are options that you can look at to make things more favourable for you.
If you own a small business, you could be eligible for Relevant Life Insurance. What is Relevant Life Insurance? Relevant Life Insurance is a great option for a director, business owner or someone being paid by a limited company who is looking for a more tax-friendly policy. It pays out a tax-free lump sum to the deceased’s loved ones, because there is a trust structure set up in tandem with the policy. The tax premiums are paid for by the company, rather than the individual, and they can be up to 49% cheaper than personal life insurance policy premiums. If you would like to learn more about this insurance policy, Drewberry Insurance has a wealth of information and a calculator tool that can show you just how much you could save compared to a personal life insurance policy.
You May Be Worried About Loved Ones Taking On Your Debts
As a small business owner, you will know that there is always going to be a certain amount of fluctuation when it comes to your incomings and outgoings. When we are weathering hard times, financially speaking, we soldier on through in the hopes that things will turn around. During that time, our business may run up a lot of debt that we will obviously keep a careful eye on and know that we will pay off when our fortunes look up. Going back to that point about peace of mind, one of the things that will keep small business owners up at night is the idea that our loved ones might be left to deal with that debt if we should pass away suddenly. This is just one of the reasons why it is so important to have a life insurance policy.
Something that you could consider with a life insurance policy is to designate a business partner as one of the beneficiaries. If you want to keep your business running in the case of your death, the financial payout that they receive could not only help them to pay off any outstanding debts, but it will help them to keep the business afloat. The UK’s small businesses need all the help they can get right now, and insurance is the responsible choice.
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