Financial security is one thing everyone is striving to achieve by putting in efforts in their own ways. Small businesses are currently booming in the industry, making space for many people with profitable talents to set up their dream businesses. While the perks of owning a small business are many on an interpersonal level, the strain it adds to one’s finances is considerable. In one way or another, there is always a certain amount of risk when investing in a small business of your own, and life insurance can help provide you with the security you need.
Life insurance is a type of insurance policy that requires the insured to pay regular premiums to the insurance company. Then, an insured sum is paid out to the designated beneficiary at the time of the insured person’s death or at the termination of the policy. A life insurance policy can be beneficial to small business owners in many ways; here are some of them:
Pay-Off Debts: It is safe to assume that owning a small business means you’ve taken out at least a few debts. In case of your untimely demise, this financial stress will fall upon your loved ones in an already difficult time, and that’s something you definitely don’t want. Life insurance can provide stability in such a time and keep your family afloat by helping them pay off any debts and loans.
Complete Protection: Life insurance for business owners includes different types of insurance that you can take a look at, like Key-person life insurance. This is designed to keep your business doors open and benefit your employees, team members, etc., when an integral member of the team passes away.
Income Replacement: If you’re the sole bread earner of your family and your small business was your income source, it is important to make sure the business isn’t affected even after you die. Tying up all loose ends would involve looking into life insurance so your family can have an income replacement without having to worry about future finances.
Flexible: One of the main perks of life insurance for small business owners is the flexibility in terms of coverage and premium amount. You can take multiple things under consideration to ensure your business does not suffer if you pass away. Deciding upon a good amount for the policy will make sure your loved ones have complete financial stability when you’re not around.
Tax Benefits: Under Section 80C, small businesses are eligible for a tax deduction of up to ₹1.5 lakh annually. This is an important pro of life insurance that will surely be of help when your family is required to clear out taxes.
A life insurance policy is something that can never be in vain; investing in a better financial future for your family will always be worth it. Check out the different ICICI Prudential Life insurance policies, along with the insurance calculator available on the website, and find the one that best suits the needs of your loved ones as well as your small business!