One morning Sarah’s phone buzzed loudly on her nightstand, and she answered the call that would change everything. A quiet voice sliced through her haze of sleep:
“I’m so sorry, Sarah, but Taylor passed away in a car accident last night.”
Taylor had been more than a business partner. He became a close friend as they built a consulting firm from the ground up, navigating the stress and excitement of their first year of business and weathering challenges and wins as their team expanded. But now, Sarah was left to pick up the pieces on her own, and there were a lot.
Life Insurance for Small Business: Counting the Cost
After Taylor’s death, Sarah had contracts to honor, employees to reassure, and clients waiting for answers. Taylor hadn’t carried life insurance since it seemed like an unnecessary cost. Now, Sarah was facing not only the emotional toll of his sudden loss but also the daunting reality of how to handle their small business without the financial resources to bridge the gap.
Why Every Small Business Owner Should Consider Life Insurance
Being an entrepreneur often means wearing all the hats: managing the day-to-day, planning long-term strategy, and putting out fires. But amidst the hustle, one critical aspect often gets overlooked: life insurance. If you’ve ever wondered how your family or business would cope if the unexpected happened, you’re not alone.
Life insurance isn’t just a precautionary policy. It’s a lifeline that can provide stability through unpredictable circumstances, and peace of mind for you, your business, and your family.
1. Protect Your Family’s Financial Future
All entrepreneurs accept a certain level of risk by the nature of their profession. They know that their income can fluctuate, so they plan accordingly. But, even when you’re gone, your family’s needs will remain. Life insurance enables your family to maintain their standard of living, cover daily expenses, pay off a mortgage, or even fund education costs. If something happens to you, the last thing your family wants to worry about is money.
At Henry Insurance, we recommend Term Life Insurance as a cost-effective, affordable solution to provide your loved ones with a safety net while you manage the critical years of building your business.
2. Save Your Business and Its Reputation
Like Sarah and Taylor, you may work with a partner. If so, a buy-sell agreement funded by life insurance enables any remaining partners to buy out the deceased person’s share of the business. This prevents disruptions that could hurt the business reputation or even cause financial strain that results in letting valued employees go to bridge the gap. Your business is more than just a source of income—it’s your legacy. Especially in South Louisiana, our close-knit business communities place high value on relationships, and reputation. You don’t want to leave your partners and employees without the necessary coverage to address debts, payroll, and overhead as they navigate the transition of your passing.
Henry Insurance offers a solution: Key Person Insurance provides financial protection and helps your business transition if a critical team member is lost, covering your business costs as you search for a replacement.
3. Shield Your Loved Ones from Business Debt
Every entrepreneur knows the adage ‘you have to spend money to make money,’ which most likely means you’ve taken on some sort of loan to start your business. But, this takes time and consistent success to pay off, and life insurance takes the burden of unpaid business debt off of your loved ones, giving them one less thing to worry about in the event of your passing.
Business Loan Protection Insurance covers outstanding business loans, safeguarding your family’s financial well-being. Discuss your options with a trusted advisor at Henry Insurance, and we can customize a plan to meet your needs.
4. Attract and Retain Top Talent
Life insurance policies aren’t just for business owners, they’re a valuable benefit to offer employees. Group Life Insurance is an affordable perk that makes your business more appealing to potential employees.
In Baton Rouge’s relationship-driven business environment, offering life insurance will set your business apart and make you more attractive to potential hires. It shows that you value your team enough to think ahead for their protection, enhancing loyalty and attracting top talent.
5. Enable Long-Term Business Growth
Running a business means juggling clients, and permits, and organizing team-building retreats for your staff. There are a million things to do, and it often feels like you’re the only one who can make it all happen. A good life insurance policy takes some of the worries off your plate and allows you to focus on growing your business without the worry of “what if.”
At Henry Insurance, we recommend Whole Life Insurance. It offers lifelong coverage and accumulates cash value, providing both security and a financial asset for future business needs.
6. Don’t Miss the Tax Benefits
If you set up a life insurance policy as an entrepreneur, the premiums you pay may be deductible, helping you reduce your business taxes. If the policy pays out, then that money will go to your family or beneficiaries tax-free.
Here’s another aspect to consider: some life insurance policies can serve as a reasonable backup for a retirement plan (something else entrepreneurs and freelance workers need to consider individually). Certain life insurance policies accumulate cash value over time, which may be borrowed against or withdrawn at a later date without tax penalties. So, it can also function as a valuable financial resource during your lifetime.
Partner with Henry Insurance for Peace of Mind
At Henry Insurance, we’re proud to be a locally owned business. As your neighbors, we understand the sorts of challenges that come with being an entrepreneur in Baton Rouge because we’re part of the community too.
Let us help you build a life insurance plan that fits your needs, so you can focus on what you do best—growing your business and savoring every bit of life. Call Henry Insurance today to find customized life insurance solutions that protect what matters most.
