Have you ever thought about what would happen to your business if tragedy struck? What would your family do? Would your business survive or have to be sold or shut down? These are all good questions and things that few business owners think about. Once the business is set-up, job duties keep people from planning for death or unexpected accidents.
Common Life Insurance Amounts For Self-employed Individuals (men and women):
When you are self-employed, life insurance (term or permanent) is a practical idea. The problem is that a self-employed person's income varies often, so it's hard to know exactly how much life insurance to purchase. When looking into how much coverage should you get, it's best to take your highest monthly income, multiply it by twelve and then multiply that figure by ten. This is an approximate idea of how much life insurance you should purchase.
One of the important decisions regarding self-employment is deciding what happens to your business. If you are comfortable with somebody else running the business for you, make sure your life insurance will keep the business financially sound. If you are paying a loan on your business space, have enough life insurance to pay off that amount or at least reduce it. Most times, businesses operated from a person's home are shut down after a person's death. It is simply hard to pack up and move the business to another location and uncomfortable for your family to have someone come into the home day after day.
Your life insurance policy should not only cover business expenses, but it should also provide enough income for your children and spouse or significant other to survive on after you've passed away. If your income was the larger of the incomes, it is important to make sure your family does not suffer financially. Often, unprepared individuals leave their family with a mess. Funeral expenses eat up savings accounts. They may be forced to sell or to default on their mortgage. Eventually, they will be evicted and wind up living with relatives or on the streets. It's not a good situation, especially for a family that is still grieving.
You can prevent the worst from happening by having a life insurance policy in hand. The younger you are, the lower life insurance payments will be. Life insurance is very affordable, and the Internet helps make it easy to research benefits and premiums.
Realistically, there are term life insurance policies out there that cost under $20 per month, so you can give yourself and your family peace of mind very affordably.