Many small and medium-sized business owners are unaware of the need for business life insurance coverage. The truth is that all businesses, regardless of size, require whole life insurance. It can assist firms in escaping regular bank loans, benefiting their employees, and gaining tax advantages.
You can save your company from an extra financial burden with this insurance. There are multiple reasons why business owners need whole life insurance. Here are a few:
- Ease in getting loans: Business owners need a life insurance policy as early as possible, especially if they plan to start their own business. It will help them get loans from banks and other financial institutions. Secondly, it can protect their assets from being seized by creditors or employees who want to take advantage of the firm’s failure.
- Ensures protection of the firm: Whole life insurance protects the business owner, who can pass on their company to the beneficiaries. It helps to ensure that the business will be passed on to future generations and not just sold off for parts or liquidated. This helps maintain the business continuity and ensures that the future owners have sound financial backing.
- Provides tax benefits: Several tax benefits are associated with whole life insurance, which extends to cash value growth. In contrast, the insured lives and receives the death benefit after passing away. Business owners need this insurance because it provides a place to grow wealth tax-free. With careful planning, the distribution of assets can also be taken tax-free.
- Retains and assures employees: Whole life insurance policies can also benefit business owners who want to encourage their employees to stay with the company after they have left. The policy will provide them with an income stream while they are still alive and allow them access to retirement benefits after leaving the firm’s employment.
- Protects intellectual ability: A “key person” policy allows firms to protect themselves against income loss due to the loss of key people. Business owners can fund this insurance and borrow it against them to cover business expenses and future liabilities. The policy’s death benefit offers funds to business owners to offset the cost of filling voids left by key employees’ departure.
Learn Why Business Owner Needs Whole Life Insurance with Weaver Insurance
Business owners should consider purchasing life insurance since it gives flexibility, growth, and security. Several Fortune 100 and 500 corporations have used Whole life insurance for decades. Owning business life insurance should be one of your top responsibilities, whether your company is large or small.
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The coverage provided in a whole-life policy is much greater than that of term insurance, so the premiums are relatively affordable. Contact our life insurance experts at Weaver insurance today if you want a life insurance plan to give you peace of mind and protection for your business.