Are you interested in life insurance as a form of financial security for your business?
If you haven’t explored this avenue yet, it’s worth understanding how you can profit from it both personally and professionally. Life insurance purchased in Fords, NJ can be a powerful tool for you as an entrepreneur, but only if you choose a policy that makes financial sense.
Term VS Whole Life Insurance
Both term and whole life insurance can be valuable to a small business owner. Term insurance tends to cost less in terms of the monthly premium, and it can be your lifeline in case of an emergency. If you pass away, your loved ones can be taken care of immediately with a lump payout.
Whole life insurance is more costly per month. However, your value grows steadily with the age of your policy.
Also, you can borrow against whole life insurance in order to invest in your business. It can be used as a vehicle for investment or as a source of cash flow in case of an emergency.
As a compromise, you can opt for convertible insurance. This means your policy would start as a term life policy, and then you would have the option to turn it into whole life coverage. Check with the Five Star Insurance Agency to learn about the specifics of the convertible policies provided.
Base Your Coverage On Your Business Valuation
Life insurance is a useful option for entrepreneurs, but it can quickly become a burden if you choose a policy that doesn’t match your financial situation. Base your coverage on the value of your business as well as your personal equity in the business. Calculate how much debt you have, versus the steadiness and value of your current income. Think about your future needs, and what kind of payout you would need for the business to go on in case of your death. Given all of the above, find a policy that gives you sufficient coverage without sending you further into debt.
Are you ready to secure your business and loved ones with a life policy in Fords, NJ? Contact an agent at the Five Star Insurance Agency to go over your needs. together, we can find a policy that fits your needs like a tailored suit.