WHY LIFE INSURANCE IS IMPORTANT IF YOU’RE SELF EMPLOYED

What are some of the reasons for this? While it is not advised for those who are self-employed, some individuals opt to forego life insurance. Opting out of your group life insurance policy often entails leaving your job to pursue self-employment. However, life insurance is not always excluded, as certain insurance policies may persist even if your situation changes.

Bridging the gap can assist in securing life insurance. It is crucial to maintain a reliable income source to ensure the continuity of your important obligations. It is possible to face financial difficulties if you rely solely on your family’s income in the event of your loan officer’s absence. The untimely demise of an individual can have both a significant emotional and financial impact.

You Need A Successor

Unexpected expenses can be covered by life insurance, which always helps to cover the costs. Sometimes, when hiring a qualified individual or when a family member takes over, it is necessary to ensure that the business continues running after you pass away, in order to keep it going.

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Your Debt Could Be Inherited

In the event of your untimely demise, it might be advisable for you to consider paying off any potential obligations that could result in your family having to pay out on a life insurance policy. Some companies may accumulate debt as a cost of doing business. It takes time to achieve separation. However, not every entrepreneur connects their real estate to their business or takes on personal debt.

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Term Life vs. Permanent Life Insurance

There are a few types of life insurance available for self-employed individuals, including permanent and term life insurance, which people who are self-employed often choose to keep costs down.

Term Life Insurance

Life term tends to be the top choice for these reasons. Depending on your career, gender, and health, the cost may come at a higher price, and it may be more difficult when activating a new policy at the age of 30 to 10. Plus, there is nothing to show for what you’ve paid into it when the policy expires, but life term insurance is far more affordable than permanent. Term life insurance typically lasts for a specific period of time, such as 30, 20, or 10 years – implying the name.

Permanent Life Insurance

Once the funds are distributed to the next of kin, the “loan” is repaid from the policyholder’s death benefit after their demise. Others strive to keep it untouched until necessary after retirement as life and business events dictate; some may occasionally borrow from the policy. Whether tax-free or on a tax-deferred basis, you will have accumulated sufficient cash value to seize the opportunity to borrow from it once you have made payments into the policy for a while. With the option to borrow against it, permanent life insurance has no expiration date, which means your rates are fixed for life; it is more costly and offers benefits throughout your lifetime.

We are here to support you. Connect with us to explore the right life insurance policy for you. Fortunately, there are options available, and life insurance is important, especially for the self-employed.