Small business owners need to understand certain long-term financial aspects for themselves and their company, and life insurance is definitely one part that should not be overlooked. Kim Inglis writes on the Financial Post that with the high costs of disability and illness, life insurance policies are imperative for business owners.
"Insurance can provide funds to pay the mortgage, finance medical expenses, and maintain family routines," Inglis writes on the website. "It can be especially valuable for sole proprietors because it can ease the personal liabilities associated with owning a business."
Business owners' life insurance can protect the company and family in the event of death. Certain types of insurance policies can provide protection for individuals who have a long-term disability or illness, which is hard to account for with regular savings, Inglis said. She cites insurance researchers' estimates that suggest people who save 5 percent of their income for 10 years would run out of money after six months of disability.
Small Business Trends said life insurance may seem like somewhat of a headache to spend money on, but families and business owners can achieve financial security for their loved ones and business partners, respectively, by securing a life insurance policy.