Life insurance for business starters

When starting a business there are a thousand and one things to think about.

How to finance the start-up costs, where to locate the premises if there are to be any, how to go about employing people, setting up tax codes – the list goes on and on.

One thing many business starters forget to give much thought to in the beginning is what will happen to the business should they die? In a time of new beginnings and fresh starts an untimely death is something that simply doesn’t occur to people. As a business starter, however, it is vital that you give it some thought.

Should the worst-case scenario happen before you purchase life insurance from lifeinsurance.org.uk or another reputable company, the chances are your business will go into liquidation.

Without adequate cover, you could be leaving your business partners and/or family in a lot of trouble. The chances are there will be outstanding loans on the company that need paying off. Having life insurance could mean that these debts are paid by the insurers rather than out of the pocket of business partners or family members.

Insurance doesn’t have to take up a huge chunk of your monthly expenditures. Obtaining life insurance quotes from lifeinsurance.org.uk lets you price up the best deal for you.

As a business owner, you would perhaps do well to employ the services of an insurance broker to help you ensure you get the right policies that will cover every eventuality. A broker is paid mainly by the insurance companies rather than the consumer, so their services are often free and if not rarely pricey.

A broker will often be able to get you a better deal than you could negotiate yourself as many companies offer better prices to brokers as they are more confident that the right policy is being matched up to the right person or business.

In most cases it is recommended that business life insurance policies be set up so that if the money has to be paid out it goes directly to the company rather than to a family heir. This is so that it will be used to cover the expenses the early death of one of the partners can bring.

There could be new employees to hire in replacement or salary raises as staff are given more responsibility. The business can however use the funds as they see fit, and in many family-oriented businesses part of the money is used to provide income support to the family of the deceased.

Critical illness cover is one aspect of life insurance that all business owners should also consider. This covers you if you have to take time off work due to a critical illness or injury.

Paying into a critical illness policy means that should you need time off sick there will be additional funds to be pumped back into the business to help pay for any extra cover needed in your absence. When you get your life insurance quotes you will be able to discuss what your business needs will be in your absence and work out which is the best policy for you.