The prospect of establishing your own business is an exciting yet intimidating one. On one hand, you get to set your own hours, earn a higher wage, and stretch your creative muscles. On the other hand, you’ll find a lot of responsibility resting on your shoulders. Clients may expect you to meet strict deadlines, and what few employees you do have to depend on you to be paid on time. Not to mention, you alone bear the risk of potential failure. According to William Schantz, a solid life insurance plan can help alleviate some of the stresses of being a small business owner.
Why William Schantz Believes You Are The Beating Heart of Your Business
In large organizations, the CEO doesn’t need to micromanage every facet of the business, they can step away and rest assured that the business will continue to run smoothly. The same cannot be said for small business owners. William Schantz points out that by investing in life insurance, small business owners are ensuring that they are able to manage their business without compromise.
Types of Life Insurance Small Business Owners Should Consider
There are a few different kinds of life insurance plans that offer various benefits to entrepreneurs and their small businesses. William Schantz elaborates on a few of them below:
Key Person Insurance
Key Person Insurance is a kind of insurance plan purchased by the business rather than the owner. It allows business owners to ensure that their business has the necessary funds to continue in the event of their demise.
Individual Life Insurance
For sole traders, an Individual Life Insurance Plan can help to ensure that they have enough capital to cover any necessary responsibilities and clear their debts. If a sole trader were to die without having paid off their debts, those debts may pass on to their next of kin, life insurance can prevent that from happening.
You may choose to start a business with a friend or family member. A Buy/Sell Agreement can ensure that your jointly-owned business isn’t compromised in the event of one partner’s death. What this means is that the remaining partner will be able to use the money received from the life insurance plan to buy their deceased partner’s share of the business.
William Schantz Advises Entrepreneurs to Consider Disability Insurance
The thought of being left permanently disabled can be harrowing, but it’s a very real possibility that small business owners need to be prepared for. An accident that results in permanent or long-term injury can leave business owners unable to continue working, this means an end to their cash flow. Disability Insurance can provide a safety net for small business owners in the case of such an unfortunate circumstance.
Small Business Owners Should Act Now
Market data by the Small Business Administration shows that a majority of businesses classify as small businesses. William Schantz points out that the sheer number of small businesses in America are such a vital part of the country’s economy, that any harm down to the small business industry as a whole, would be disastrous on the economy. That is why now more than ever, there is a need for life insurance reform that benefits small business owners.