Why self employed individuals and small business owners need Life and Disability Insurance



When you decided to go into business for yourself, your first thoughts were most likely excited ideas of what could go right: more freedom, happy customers, increase earning possibilities. However, your later thoughts may have turned to what could go wrong as well and that is where insurance steps in to aid. As a small business owner, entrepreneur, self employed individual or freelancer, you are your business, and your business depends entirely on you. Fortunately, insurance is there for you when things take an abrupt turn.


Thousands of people become entrepreneurs and start a business every year. In fact, there have been about 400,000 startups annually for the last decade, according to the Small Business Administration.

Just as many businesses are created each year which many fail as well. It’s evident to the challenges businesses face and the resources it takes to maintain operations on a productive basis year in and year out.

Life insurance and disability income insurance can be means that help handle some of those challenges.

Here is couple ways life insurance and disability income insurance can help you as an entrepreneur.


Protect your family

A business takes investment and seed money to get it off the ground. Many entrepreneurs put up their own assets as collateral for business loans. Sometimes, those assets are essential to family members as well. Taking out a second mortgage on a home for instance such as a loan against a 401(k) account.

All that is well and good if things go as expected and you and your business flourish. However, what happens if you get too ill or injured to manage the business? Or worse, you pass away? Such events could have negative ramifications for your family. That’s why any entrepreneur needs life insurance and disability income insurance. So much of his or her net worth and cash flow is related to their business value which losing that can be catastrophic for a family depending on that value.


Source of capital

Certain types of permanent insurance, like whole life insurance, build cash value over time. This cash value can be used at any time and for any purpose. While there can be disadvantages for doing so, some business owners find this a convenient inception of funds to bond unforeseen financial stress in their operations.

Having that cash value is valuable especially for small businesses. Furthermore, having that protection is important but the cash value is a main element. Any entrepreneur needs both disability and life insurance whether self employed or small business owner also like death, disability can be detrimental to a small business owner financially.


According to the Social Security Administration, one in four people will become disabled in their working life. With these odds, disability insurance becomes a necessary protection for all workers—whether you are an employee or entrepreneur.

According to the Small Business Administration (SBA), over 99% of America’s firms are small businesses. Apparently, our country’s entrepreneurs and small business owners are imperative to our economy. That is the reason we need to do everything we can to assure and support them, and life and disability insurance aid us do just that.


Individual Life Insurance

For instance, even if you do not have partners, you should consider a basic life insurance policy to cover your debts and responsibilities. If you die, your family would have financial relief from a cash benefit that could help close down or sell off your business if they don’t want to continue the work in your firm.


In the end, life insurance and disability income insurance can serve as versatile means for business owners and entrepreneurs. Additionally, life insurance for business owners can offer protection for family and partners. Keep in mind, life insurance provides peace of mind for your business, and all those who depend on you—family, employees and customers—in the event of your death. Disability insurance provides income for you in the event that you are unable to work due to illness or injury. If you are an influencer, self employed or business owner, you owe it to yourself to protect everything you are working so hard to create. Obtain a quote so you can make an inform decision to assess what right for your situation or if you have any questions email at neilh@nhinsurance.net


https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf

https://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf

https://lifehappens.org/blog/why-small-business-owners-need-life-and-disability-insurance/