An insurance policy provides financial help during difficult situations.
It is a fact that entrepreneurs or businessmen take risks for their business and carry out research and prepare a business plan. They even adopt various strategies to stay ahead of the competition and make their business grow.
Even though this is important there is another thing which should not be missed and that is life insurance.
Not having life insurance protection can cause problems during unexpected events especially to the business owner. An event like this could end the lifetime dream of the owner i.e. business failure or bankruptcy which will also have an adverse effect on the family both emotionally and financially.
If you think life insurance is not important you should think over questions like who will handle the business if the business owner’s health is not good or if the business owner meets with an accident, who will support the business, and the employees?
It will put the business partners, investors, and stakeholders at risk.
When you start with your business, take an insurance cover as well.
Importance of a life insurance policy
1. Pay off debts
Some of the business owners take personal loans for their children’s marrage or to pay off a debt, but in sudden mishaps, all of the burdens will fall n the family. With the help of life insurance, the family can take care of such liabilities without making any compromise.
2. To take care of the family’s needs
Life insurance can help with children’s education, to take care of the expenses, can be used as income replacement, and also for savings or investments.
3. Business insurance
Insurance policies are designed for business owners so that the business partner can acquire the share of the business, while the sum is provided to the deceased business owner’s nominee.
4. For short and long-term requirements
The insurance policy you have taken can be crucial in helping your loved ones take care of their short term, and long term needs. Short term needs may include loans, or liabilities, which need to be repaid quickly. Long-term needs could be to take care of the children’s education, to invest, or save for the future, to take care of recurring household expenses, etc.
5. To save on tax
The insurance policy also helps to save tax. Insurance policyholders can avail tax benefits up to Rs. 1.5 lakhs on the life insurance premiums.
Also, consider these things before buying the insurance policy:
- For whom should you buy the life insurance
- Consider the amount of loan you have to pay
- Consider buying a policy which is of adequate amount
If you want a loan for your small business, contact Gromor Finance for unsecured loans at affordable interest rates and a loan disbursal of 3 days or less!