The life of an entrepreneur is fulfilled with hurdles and lots of ups and downs. To embark on an entrepreneurial journey one needs to be flexible to face lots of uncertainties. Such risks and uncertainties call for robust backup plans and reliable insurance. Let’s understand why insurance is such a big deal for entrepreneurs.
Cover your loved ones against probable eventualitiesGetting complete insurance to secure nominees is essential, especially for entrepreneurs because of their high-risk professional life. Top the occupational risk with life's uncertainties, and they have a double set of risks to deal with during every stage of life. Whatever affects you affects your family and other people who are dependent on you. Hence, get a pure life insurance or term life insurance to secure your dependents from such double risks.
Cover your business against unforeseen eventsThe Keyman life insurance policy is a boon for entrepreneurs. In this life insurance policy, the entrepreneur is insured, but the premium is paid from the company's account. In the event of death, the insurance cover is paid to the company. This is a crucial policy to secure the company against any damage caused due to the eventual loss of one of the founding members.
Things to keep in mindYou don’t want your loved ones to suffer because of inadequate insurance cover during unfortunate events. To land up with an insurance cover that is of limited or no help is the worst possible thing to find out for anyone after they have lost their loved one. Make sure that your family members don’t suffer this by considering a few things before getting insurance.
Consider your total debtAs an entrepreneur, you may need to borrow money from more than one source. Also, for most self-employed people, the obligation not only consists of their loans but also involves the credit from their suppliers.
Consider all the financial needsJust insuring yourself against the debt is not enough. Consider all the financial needs of dependent family members and understand what they need. To ensure that they don’t have to carry any financial burden in your absence you must get a life insurance cover that pays off more than what they need.
The life of an entrepreneur is filled with loads of excitement but also with as many risks. To make sure that your family doesn't suffer the brunt of your risks in the event of an untimely death, get a life insurance cover that is suitable for you.
Learn more about our online life insurance plans.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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