Many professionals nurture the dream of being successful entrepreneurs by quitting their tedious 9 AM to 6 PM job. The reason behind this can be that their job may not be good enough for them to fulfill their ambitions. Besides this, many people love to make their own professional decisions. Being an entrepreneur is not easy, as you have immense responsibility on your shoulders to ensure your business’ success and create a niche for yourself.
Entrepreneurship comes with a high financial risk. Moreover, it is difficult for you to foresee the profitability of the business, especially during the initial years. Besides this, your take-home income will be limited, as you will have to invest in expanding the business.
Life is full of uncertainties, and you need to think of how will your family members manage their expenses if you are the sole breadwinner, and something unfortunate happens to you.
It is imperative to invest a part of your income in instruments that help your loved ones meet their expenses and financial aspirations, and at the same time stay financially protected against such unforeseen situations. Thus, it is advisable for you to invest in a life insurance policy, like a term life insurance plan.
Advantages of term insurance for entrepreneurs
Here are a few points that highlight the importance of a term plan for entrepreneurs, like you:
- Irregular income source
If you are a salaried person, you will get a fixed income every month, making it easier for you to plan your finances. However, if you are a business owner, the income can be infrequent, especially if you have started a new business venture recently. Even though you put 100% effort, you may not generate high revenue, as it takes time to build a new business. Some months you will earn a substantial sum while other months maybe lull. If you do not want your family to face any financial difficulties in case something untoward happens to you, it is advisable to invest in an online term plan. Such a policy offers a high sum assured at an affordable premium.
- Liabilities of business
While doing a job, you are given a laptop, an Internet connection, and other essential requirements. However, when you are an entrepreneur, you need to invest in adequate infrastructure, technical gadgets, and computers/laptops to run your business. Besides this, you will have to make provisions for working capital to ensure smooth day-to-day business operations. Additionally, you may have to seek financial assistance in the form of business loans and bank overdrafts, among other ways for the business’ growth and development. Just imagine how will your loved ones repay these monetary obligations in case of an unfortunate incident. The high sum assured of a term life insurance plan can help your family pay the liabilities and lead a stress-free life.
- Dependence of non-earning family members
In recent times, both the spouses earn money and contribute towards all the expenses. You need to plan your life and ensure you have ample savings and investments to overcome any financial obstacles. However, what if you are the only earning family member? Have you ever thought about who will take care of your family’s monetary requirements and objectives during your absence? Investing in a term plan is the answer to these questions. The death benefit received by your nominee is significantly high and can support your family in meeting their daily expenses and life goals over time.
- Simple and safe
Many people find it difficult to understand the terms and conditions of insurance plans because of their complex nature. However, in the case of term insurance in India, the conditions are quite straightforward, making it easier for you to have clarity about the same. A term plan’s premium is the same throughout the policy’s tenure, and it provides a specific sum assured.
- Reasonable premiums
Generally, term insurance comes at an economical premium as compared to other types of life insurance plans. This policy provides a high sum assured at a pocket-friendly rate. Moreover, the premium reduces further if you invest in an online term plan.
As an entrepreneur, your priorities should be to expand your business as well as secure the financial well-being of your family. You need to work with dedication to achieve the former, whereas you can accomplish the latter with the help of a term plan. While buying a term plan, consider the policy’s tenure, the sum assured, premium, and riders.