As a business owner, you probably already have one too many things to think about. Whether you’re trying to secure the best creative talent for your next project, find new clients or keep up with industry trends, it can be hard to find the time to think about the little details. But even though you’re a creative, it’s important to have a firm hold on your finances and financial security. One way to do this is through life insurance, especially if your priority is protecting the important people in your life. Here are some reasons why life insurance could make your life easier:
Keeping your loved ones safe
Your creative business is probably your passion, but that’s not all it is – it also generates the income that supports your family and pays your bills. If you know your loved ones would struggle to carry on without the income your business brings in, life insurance can help them to keep going if you were to die unexpectedly. Depending on the policy you choose, your family may receive a lump sum of money or regular monthly payments to help them make ends meet. Make sure you browse different life insurance deals to find out which one will work best for your needs before making a firm commitment.
Safeguarding your business
If your business is really important to you and you’d hate to see it fail if you were to die unexpectedly, life insurance can help your partners keep things running smoothly when you’re no longer around. This is especially important for business founders who have special creative skills that will be hard or expensive to replace. A life insurance payout can help business partners to replace your skills as well as pay off business loans. However, you do need to keep in mind that business life insurance won’t cover your loved ones, so you may need two different policies.
Business life insurance can also help joint owners or key shareholders to maintain control of your business. So, if you want your business partner to be able to buy out your shares if you pass away, then life insurance can make sure of that. This helps co-founders to ensure their business will always move in a direction they’re happy with.
Protect your income
Business income in creative industries can vary from month to month, especially if you’re just starting out. While life insurance is typically used to give your loved ones money after you die, you can invest in extra add-ons such as income protection insurance and critical illness cover. This means that you may be able to receive payments to replace your income if you’re ever too unwell to work. This will not only help you cover rent payments and bills, but it can help your business to carry on without you as well.
Taking out life insurance can be a big commitment for a fledgling business owner, but it’s worth thinking about especially if you’re taking out other types of insurance as well. Sometimes life insurance can be just as essential as public liability, so consider your options carefully and don’t wait until it’s too late.