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Why Do I Need Life and Disability Insurance as an Entrepreneur?

16 Jun by 5280 Insurance

When you first decided to enter the business scene for the first time, you most likely experienced excitement about things like happy customers, freedom to run the business, increasing earnings, and the like. But of course, this is all then soon followed by thoughts of what could go wrong, and let us tell you, a lot of things can go wrong when running a business.

While some things are pretty obvious, such as the lack of finances or the challenge of finding customers, there are some issues that you may not have thought about. Let us ask you, have you ever put the time and thought into your life and disability insurance? You should, and here’s why:

Why Do I Need Life and Disability Insurance as an Entrepreneur?

There are a couple of reasons a life and disability insurance policy is vital to you and all entrepreneurs.

First of all, life insurance will ensure that your loved ones are taken care of, no matter what happens to you. Life insurance is essential for anyone who is married or has children. It may not be the first thing that you think about when you start a business, but it should. Life insurance will protect your family from any financial problems that your death may have caused. Even if you have no kids, you will most likely have a certain amount of money that your family needs to pay off funeral costs, taxes, and other such things that could be expensive.

Secondly, disability insurance protects your business from going bankrupt, as well as you. Disability insurance can cover all the expenses that come with a disability, such as lost wages and replacement of your work. Even though disability insurance is not a requirement in the United States, it is still a good idea to grab one because you never know what might happen in the future. 

What Kind of Life and Disability Insurance Are Available?

1. Individual Life Insurance Policies

When thinking about the best life insurance policy, you might want to look into individual policies. With individual life insurance, the insured person is the only one who has access to the coverage. This is typically the best option for the business owner and is treated as a basic life insurance policy.

In order to get an individual life insurance policy, the business owner will have to answer a series of questions about their health, lifestyle, and family history.

2. Buy/Sell Agreement

A small business buy/sell agreement is a type of life insurance policy that allows the business to continue after the business owner’s death. It is a contract between the business owner and the business partners that allows the living partner to buy out the deceased partner’s interest from their family members should they not want or cannot run a part of the business.

3. Disability for Employees and Entrepreneurs

The ability to continue business operations is both something that you, as the owner, and your employees rely on. Even if you have a team in place to run the business while you are unable to do so, they are not going to be able to do nearly as much as you would have done. This is why disability insurance is such an essential factor to consider in both your business and personal life, along with for your employees to keep them covered in the event of an accident.

Conclusion

While some people think that disability and life insurance are just a bother, they are actually a necessity for any entrepreneur. After all, anything can happen to you, the entrepreneur, and should you get disabled or pass away, you want to ensure your family can continue living a comfortable life without you around. So, do yourself and your family a favor and grab life and disability insurance today!

5280 Insurance is a reliable insurance company that provides various policies, from auto insurance to home insurance and more. If you are looking for policies to protect you, your family, and more, reach out to us today!

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