One of the reasons why you decided to start your own business was to provide a better life for you and your family. So, it also just makes common sense to consider getting some life insurance too.
But the question for entrepreneurs is: what type the best type of life insurance to purchase?
There are two common types of life insurance:
- Term life insurance
- Permanent life insurance
Both options have pros and cons, and each one serves a purpose based on different needs. So when you are searching for life insurance, keep in mind the best coverage is one that provides you with the amount of coverage you want for your family with a manageable premium.
Term life insurance provides coverage for a certain period of time or until you reach a specific age. If you die during the term of coverage, your beneficiary receives the face value of your policy. At the end of the coverage period your policy expires or your premium goes up in cost.
Permanent life insurance covers you for your entire life and rates usually stay consistent as you age. Some permanent life policies build cash value that you can borrow against while you are living.
Term Life Insurance for Business Owners
Easy to Understand: Term life insurance is a simple product. The idea is that you pay a premium for a set period of time with a specific coverage amount that will go to your beneficiary upon your death.
Some types of policies require a medical exam and blood work as part of the underwriting process, but many insurance companies offer term life for business owners without a medical exam.
Low Cost Option: For most small business owners, the best reason to buy term life insurance is that the rates are typically much lower than permanent life insurance premiums.
When you purchase term life insurance, your monthly premium is usually based on factors such as age, gender, and, your medical history at the time you apply for coverage.
As you age, generally the cost of coverage increases after periods of 10,15, or 20 years. When it comes to finding the best prices for term life insurance for business owners, the most affordable life insurance prices can usually be found with companies such as: Prudential, Banner Life, American General, and Protective Life.
Guaranteed conversion options: Some insurance companies allow policy holders to upgrade or exchange a term policy for a universal life or whole life policy at any time during the term coverage period.
This means that any time during the term, you can convert to a permanent life insurance policy for coverage that will last your entire life.
Choosing a guaranteed conversion option also means you do not need a medical exam or go through the application process. Make sure this option is available with any term policy you purchase.
To determine which term life insurance plan is the best option for you, consider your business and family needs, and what premium you can afford today.Our advice to most business owners is simple: find a policy you can afford for death benefit required and concentrate on running your company.This will allow you have an easy to manage premium without using to much of your company’s ongoing cash flow.
To determine your life insurance rates for your age for the amount of life insurance you require use our instant life insurance rate calculator. Business owners can compare quotes from 186 different life insurance companies with our free life insurance calculator for business owners.
We would love the opportunity to work with you on your life insurance planning. We specialize in helping small business owners find affordable term life insurance. Please do not hesitate call us with any questions 1-877-249-1358.