Posted: May 01 '20

Why Term Life Insurance is a Sensible Choice for Most Business Owners

There are many types of insurance that should be considered when you start a new business. Having disability insurance and life insurance are obvious choices.  There are several types of life insurance that can be purchased.  One of these is term life insurance.  Term life insurance allow a business owner to purchase the greatest amount of coverage for the lowest premiums. Contact us to learn more about term life insurance.

What is Term Life Insurance? 

A term life insurance policy is not permanent protection.  The word, “term” means he length of time the premiums stay level before they increase.  The shortest term is Term 10 and then you could get Term 20, Term 30 and Term to 65.  The longer the term, the higher the starting premium.  At the end of the term the policy will renew for the same amount of coverage, but the premium will be much higher.  It works great for business owners that are young, taking on new debt, or going through significant changes. Taking out a term life insurance policy for your business will safeguard your family in the case of the death.  Term life insurance can also be taken out on key people in the company.  Should your key person pass away the life insurance benefit would be paid to the business so you could hire a new person without suffering a loss. 

How Can Term Life Insurance Help My Business? 

When a business has bank loans, should the business owner pass away those loans still need to get paid.  Your term life insurance policy would cover the amount of those loans freeing your family of that obligation.    

For example, a male non-smoker, age 40 could purchase a 1-million-dollar Term 10 policy for between 50 and 60 dollars per month.  Assuming they’re in good health.   

This type of insurance can be taken out under the corporation's name or the owner's name, and the beneficiaries will be paid in one tax-free payment. 

A term life insurance policy will: 

• Pay off the bank loans in the event of a death of a business owner. 
  
• Pay the beneficiary an amount that is tax-free. 
  
• Because it is so affordable it done not make sense not to protect your family. 
  

Call Us Today! 

Vistaplan Financial Group is contracted with all the major life insurance companies.  Let us shop the market to find you the best policy at the best rates.  Term life insurance is simple and affordable, protect your business, your employees and most of all your family. Call us today to speak to one our advisors regarding these affordable policies.

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About the Author - David Motkoski

David is a well-respected insurance advisor with over 30 years of experience helping healthcare professionals, business owners, and their families secure their financial futures. He takes the time to make certain his clients understand the life, disability, and health insurance products they are purchasing, so they can make the right choices for their budgets, plans, and futures. CONNECT WITH ME ON LINKEDIN