Why Small Business Owners Should Consider Life Insurance

Thinking about starting your own consulting business? Or maybe you have already “opened” your business doors?

2 min read
As a small business owner, there are many important decisions you'll have to make—from billing/accounting to marketing to choosing the right types of insurance to protect your business.

Most small business owners realize they need basic business insurance, including general liability and property damage coverage. Unfortunately, many small business owners don't often think about obtaining life insurance to protect their business.

That's because life insurance is typically thought of as just financial protection for your family. But it can protect more!

What if you were to die unexpectedly? What would happen to the business you've worked hard to achieve? Would you want your loved ones to keep your business running or “close" its doors? How will your loved ones pay off any business debt you owe?

Life insurance for a small business owner can provide funds to keep your business doors “open" and pay off any business loans or debt you've accumulated. In addition, funds from life insurance coverage can help pay the rent and other office expenses. It can also be used to fund a salary to hire someone to help takeover the everyday operations of your business.

Benefits of Life Insurance

If you have a family and are the sole owner of your business (or have just one partner), life insurance may be all you need. It can be used to cover both your family and your business.

Since you can name your beneficiaries, you can list a spouse, other loved ones and/or a business partner. By doing so, your spouse and other loved ones could receive proceeds you designated to help replace your income and all you do for your family, while your business partner could also receive a portion of your proceeds to keep the business running and pay off any debt.

Level Term Life Insurance is a popular choice for small business owners for two main reasons:

  • It makes it easy to protect your family and business with one benefit amount that remains the same for the duration of your coverage.
  • It features fixed rates that won't change for the life of your coverage. Rates won't increase or decrease—making it easy to fit within your family and business budgets.

IEEE Offers an Affordable Option

As an IEEE member, you have access to a variety of insurance benefits designed to protect you, your family and your business, including the IEEE Member Group 10-Year Level Term Life Insurance Plan. It features high amounts of coverage and fixed rates to help protect both your family and business. For more details, visit www.IEEEinsurance.com.

Visit www.ieeeinsurance.com for more material.

This information is provided by the IEEE Member Group Member Insurance Program Administrator, Mercer Health & Benefits Administration, LLC, in partnership with IEEE to provide IEEE Members with important insurance, health and lifestyle information.

*Including features, costs, eligibility, renewability, limitations, and exclusions.

The IEEE Member Group Term Life Insurance Plan is available in the U.S. (except territories), Puerto Rico and Canada (except Quebec). This plan is underwritten by New York Life Insurance Company, 51 Madison Ave., New York, NY 10010 on Policy Form GMR

The IEEE Member Group Insurance Program is administered by:

Mercer Health & Benefits Administration LLC, 12421 Meredith Drive, Urbandale, IA 50398

In CA d/b/a Mercer Health & Benefits Insurance Services LLC

AR Insurance License #100102691 CA Insurance License #0G39709

87573 (11/19) Copyright 2019 Mercer LLC. All rights reserved.

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