- Secure Business’s Stability
- Avail Tax Benefits
- Steps to Buy
Life Insurance for Self-Employed and Business Owners
Being a businessman or self-employed might sound exciting, but it comes with a lot of risks, such as inconsistent income, legal risk, taxes, etc. When you’re running your own business, you’ve got to be prepared for any uncertainties because profits and sales may not always be the same. Therefore, buying life insurance for business owners is important because it offers financial protection for their family and business. With life insurance, you can make sure that on your sudden demise, the finances of your family and business are not severely affected.
Why Do Business Owners Need a Life Insurance Policy?
Business owners are used to planning their long-term and short-term finances. It is also important to do the same for yourself to protect your business, employees, and family. It’ll ensure that your business continues to thrive and your loved ones are financially secure after your demise.
To do so, you can invest in a life insurance plan for entrepreneurs to protect your family’s financial future in case of your sudden demise. It’ll ensure that your family and business do not suffer financially in such a situation. You can easily find several life insurance plans for business owners online. Compare plans and select a plan that best fits your life goals and future objectives.
Why is Life Insurance Important for Business Owners?
Estate Equalization
Estate equalization is a strategy that business owners can use to pass on their fair share of estate to the beneficiaries. With life insurance, you can easily pass your company on to a single family member while providing for other dependents.Family Protection
Life insurance for business owners offers financial protection for their family and business. It’ll ensure that your business continues to thrive and your loved ones are financially secure after your demise. Please note that the average life cover may not be enough for business owners, so make sure to opt for a higher cover.Business Protection
With life insurance for entrepreneurs, you can protect your business. It’ll help you to maintain the business’s financial stability and plan for unexpected events. Despite your sudden demise, your company continued to meet its financial obligations and withstand disruption.Dealing with Debt
Life insurance can help business owners to fulfill long-term goals such as clearing off debts, investments, etc. Having life insurance makes sure that when you’re not around, the financial stability of your business is not severely affected.Protecting Employees
With life insurance, entrepreneurs can secure their family, business and employees under a single plan. It covers financial losses and debts in case of the life insured’s untimely demise.Tax Benefits
Life insurance for business owners offers several tax benefits, making it more advantageous for entrepreneurs.
The premiums you pay towards life insurance are eligible for tax deductions under section 80C. You can get up to Rs. 1.5 lakhs tax exemption annually on the premiums paid.
Besides the tax benefits on premiums, the sum assured that your nominee gets on your demise is also tax-exempt from tax deductions under section 10 (10D).
How to Buy Life Insurance For Business Owners?
To buy the life insurance for business owners, you can do it online directly from PolicyX website:
- Visit the PolicyX Website and click on the "Buy Now Option."
- Select the "Life Insurance" option & fill out basic details like Name, DOB, and Phone Number.
- Enter the required details and click on ’Continue.’
- Compare the policy details of the different term plans that are available.
- Select a plan that best suits your needs.
- Proceed to Pay Via Net Banking, Debit, or Credit Card.
- Receive the policy on your registered Email ID.
Mandatory Documents Required To Buy Life Insurance For Entrepreneurs
Here is the list of documents that you have to submit to the insurer while buying life insurance for business owners:
| Types of Documents | Documents |
|---|---|
| Identity Proof | Passport, Voter ID, Adhaar Card, PAN Card |
| Income Proof | Last 3 years with Computation of Income (COI) |
| Address Proof | Water Bill, Adhaar Card, Rent Agreement, Electricity Bill |
| Medical Proof | Latest medical test reports allocated by the insurer |
Conclusion
As a business owner, it would be best to secure your personal or business responsibility. Life insurance helps you do so in a very reasonable manner. You can easily find different life insurance plans online and pick one that best fits your needs. Just make sure that life insurance coverage is accounted for in your family’s financial needs, business requirements, and liabilities.
If you still have some doubts, you can talk to our financial advisor and clear them up in no time. You can easily reach out to us through the website Policyx.com or give us a call at 1800-4200-269.
Life Insurance for Self-Employed and Business Owners : FAQs
1. What is life insurance for business owners?
With life insurance, entrepreneurs can secure their family, business and employees under a single plan. It covers financial losses and debts in case of the life insured’s untimely demise.
2. Can a business person take life insurance?
Yes, business owners can take out life insurance policies.
3. How much minimum income is required for a business life insurance?
There is no specified minimum income required to buy a business life insurance.
4. What are the premiums of business insurance in India?
The premiums of business insurance solely depend on the type of life plan you opted for, coverage limit, age, etc.
5. What is the purpose of business life insurance?
Business life insurance offers a one-time, tax-free payout for your business if you, your business partner, suddenly die.
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Written By: Sahil Singh Kathait
A boy-in-squares bagging escapades of switching streets in groove & sensing musical airy-notes from 6 1". Under wayed nyctophile sketching the walls of life from the panorama of anime.
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