As an Entrepreneurial Woman, Why Should I Buy Life Insurance?

Let’s get real. Purchasing life insurance is not top of mind when you are starting or running a business. You’ve got licenses, equipment, office supplies, operating expenses, payroll and dozens of other expenses to cover.

But, on the other hand, as an entrepreneur, you have a lot to protect, including your business, employees, loved ones and your reputation as possibly one of the increasing number of women of color who are fueling U.S. business startup activity. An analysis from the 2016 State of Women-Owned Businesses Report, commissioned by American Express OPEN, found that women-owned firms are increasing at five times the national average rate, and nearly eight in 10 new women-owned firms are being launched by women of color. You go, girls!

From a business perspective, small-business owners should consider purchasing several different life insurance policies as a solid financial investment. Life insurance can protect your company from financial loss, liabilities or instability in the case of death. 

Here are a few ways life insurance can assist your business:

·   Ease the exchange of business ownership if you or a partner retire, have a disability or die – without depleting the business’s capital.

·   Assist you in maintaining your business through tumultuous times by providing short-term cash flow, sustaining your operations and keeping suppliers happy

·   Provide the funds your heirs may need to ensure business continues to run smoothly

Proper life insurance protection, in the event of sudden death or disability of a founder, can help prevent the derailing of a company, resulting in layoffs, bankruptcy and possibly the collapse of the business itself. For example, key person insurance protects against the death of a critically important employee. In the event of death, the insurance pays the owner or owners of the business.

But here’s something not everyone realizes. Some policies allow you to access cash for your own use while you are still living. Several available options are usually referred to as “living benefits.” The money in the cash value account can be a flexible resource to help you reach financial goals. (But, you should know that using a policy’s cash value could reduce the death benefit, shorten or cancel a guarantee, or cause the policy to lapse, and may have tax consequences.)

Just like finding the perfect outfit to make a presentation to a potential new client, a life insurance policy should be a good fit, reflecting the scope and scale of your business. Evaluate your individual insurance needs based on your level of debt, income replacement and future obligations.

A Financial Professional can help you with a plan to deal with these retirement uncertainties and more. Click http://www.pruboss.splashthat.com to request to speak with a Prudential Financial Professional in your area. He or she will contact you. Or if you want to read about your options regarding the types of business life insurance available to you…check out this summary: http://bit.ly/2g1Zgw7.

Overall look at life insurance as a protective shield for yourself, your family, your investments and your future. It can help safeguard your assets, create an inheritance and ensure that you pass wealth to the next generation.  

What is Term Life Insurance?

•   A term life insurance policy provides a guaranteed benefit for the period, or term, you choose – usually 10, 15, 20 or 30 years.

•   During that time your premiums, the amount you pay for coverage, can remain the same. No surprises.

•   Term coverage is relatively inexpensive when compared with 

     permanent policies.

What is Permanent Life Insurance?

•  Can last for your entire life as long as premiums are paid. Most permanent policies offer

the ability to build cash value.

•   Each time you make a premium payment toward your permanent policy, a portion of that payment

covers the cost of your insurance and policy fees and the remainder is placed in your cash value account.

•   There are several ways permanent life insurance can help you while you’re still living. To learn more, check out “The Best-Kept Secret of Life Insurance” http://bit.ly/2nMcoHj. 

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