The major reason which pushes individuals towards self-employment is the need to live life on one’s own terms. On one hand it brings a sense of ownership, liability and probably greater finances and on the other hand, it is also a dicey venture as compared to the assurance of a regular, fixed monthly income.
A self-employed businessperson doesn’t have a fixed income. Setting up the business or its expansion could have required a loan, which would need to be repaid.
In your absence, paying off these loans can prove to be challenging for your family. With a life insurance policy, especially term insurance, you will be able to secure your family’s financial future in your absence.
While some professions have target-based financial rewards, most employers offer a fixed salary along with a variable bonus. You know the minimum amount that will be deposited in your bank account at the end of the month, allowing you to plan your expenditure and savings.
But if you’re self-employed, you have fluctuating sources of income. While business owners can deploy certain means for generating additional revenue, there’s no guaranteed amount they will earn at the end of a month. Unlike corporate employees, they do not have company provided insurance cover either.
With exhausted savings and bills to be paid, including debt, a term insurance plan will help your family service these debts in your absence.
Medium and small businesses are the engine that drives the country. However, most small businesses are concerned about the lack of working capital. Challenges such as inability to recover outstanding dues in time lead several companies towards deficits.
To augment the loss in revenue, or to comply with the latest regulations, you may have to seek financial assistance in the form of working capital loans, immediately exposing you to additional risks. A term insurance plan can mitigate the risk of financial burden levied on your family, in your absence.
Setting up a business requires immediate capital. Upon successful delivery of goods or services, the next step of any business is to expand. Expanding your business also calls for more financial resources, compelling you to borrow.
Term insurance policies with adequate coverage can aid in the repayment plan of the loan, when you’re not there. The burden of paying back the loan is slightly lifted, while also having an easily implementable plan in case a tragedy befalls.
Term insurance is most useful in case your spouse is unemployed, or does not earn substantial income to maintain the existing standard of living. It gets compounded further, if there are business loans to be paid or debt to be serviced.
Instead of shifting the onus of payment on to the grieving family, a term insurance plan provides an easy and practical way to service those debts, relieving your family members of the burden.
Why opt for term plans?
Firstly, it provides coverage to the beneficiary in case tragedy befalls the policy holder during the plan term.
Secondly, the monthly premium for a term plan is quite low. The premium depends on one’s age, gender, and medical history. With higher age and unhealthy lifestyle, come higher premiums. Nonetheless, entrepreneurs looking for cost-effective means to insure their family can opt for term insurance coverage.
Term plans therefore, are ideal for self-employed individuals as they’re cost-effective, hassle-free, and may even promise return of the ‘investment’. In addition, it covers the policy holder against uncertainties and sufficiently addresses the needs of the dependents.
Secure your family’s future with affordable term plans as soon as possible.