Working for yourself may sound like an ideal career situation. You have the freedom to grow your own business the way you want and without any of the parameters imposed by a boss. But it also means not having the safety net of benefits that are typically offered with a traditional job, such as life insurance. People depend on you and your business. Life insurance can keep it in the family or replace your income if the company won’t operate any longer without you.
There is an element of risk for anyone who is self-employed, both professionally and financially. Your name and bank account are out on a limb every day. But have you considered that other people are sitting out on that limb with you every day? It might be the banker who provided the loan to help get your business off the ground, the company you’re making payments to for all of the technology or tools you use, and the people who are at the greatest risk — your family.
If you work for yourself, you’ve had to carefully consider and select your vehicle insurance, property and casualty insurance, and health insurance if your spouse doesn’t have it through their employer. You bought this insurance to control how much financial damage would be done if the unexpected happened to you — a car accident you caused, storm damage to your office/home office, or an appendix that burst, causing the need for emergency surgery. But, what about life insurance? You’re still relatively young and healthy, you don’t have time to be sick, and your car insurance has some medical coverage. Can’t it just wait a few more years?
A few business reasons you need life insurance:
- You want your business to continue without you
- You have debt or real estate connected to your business that you don’t want your family to become responsible for
- You have to fund a buy-sell agreement to help someone buy your business, perhaps a beneficiary or a partner
Some personal reasons you need life insurance:
- You have business loans backed by personal assets, like your home, that you don’t want your family to lose
- Your family will quickly have to sell the business because they aren’t equipped to run it
- To provide income to your family while they learn the business because they know how important it was to you
While you can’t put a price on being your own boss, not having good insurance coverage can end up costing your family more than you expected. Your family’s financial future depends on your foresight, and life insurance is the best way to protect and provide for your loved ones after you have passed on.
Source: https://www.cnbc.com/2021/02/21/benefits-needed-to-be-your-own-boss.html and https://www.theselfemployed.com/entrepreneurs-life-insurance-made-easy/ and https://www.meetbreeze.com/life-insurance/life-insurance-for-self-employed/