Why is life insurance important for budding entrepreneurs

If you’re reading this, you’re probably someone who either owns their own business or is on your way to. No matter the size of your business, planning and being prepared for any type of financial risk is of utmost importance when you’re self-employed since you do not receive a regular salary from an employer nor do you receive an employer provident fund. Moreover, you’ve to recognise the importance of your business partners’ and employees’ financial well-being.

How does life insurance help? Let us dive into it so that you make well-informed decisions for your and your business’s future.

Financial security for your family

Life comes with its challenges and unforeseen circumstances. If you are the breadwinner for your family and their financial security depends on your business, you want to make sure they are taken care of even when you’re not around anymore.

Life insurance provides financial security for your loved ones in the event of your untimely death. As an entrepreneur, life insurance like SUD Life Century Royale can help you not only build wealth but also give you benefits like guaranteed income, maturity benefit, and life cover till the last mile. It will help you build a financial legacy for your business as well as your loved ones.

Life insurance ensures that your family and dependents are not left in a vulnerable financial position if you are no longer there to support them. It can cover ongoing living expenses, mortgage payments, education costs, and other financial responsibilities.

Business continuity

When you’re an entrepreneur, your income is likely linked to the success of your business. Moreover, if your business involves partners or co-owners, you want to make sure you have a solid backup plan to make sure your business continues in case of your unfortunate demise.

So, how can you make sure that your business goes on when you’re not around anymore? Life insurance can play a critical role in ensuring the continuity of your business. In the event of your passing, your life insurance policy can provide the necessary funds to buy out your share or provide a financial cushion to sustain the business until a transition plan is in place. This ensures that your business partners and employees are not left in a lurch and the enterprise can continue to operate smoothly.

Protection from debt

Deciding to go on a business venture on your own comes with a huge financial commitment like taking a loan or getting financial support from funders. Entrepreneurs often take on significant amounts of debt to fund their business operations.

Life insurance can be used to cover these debts, ensuring that your family or partners are not burdened with the responsibility of repaying loans or business-related debts if something were to happen to you.

Life insurance becomes even more crucial when you’re an entrepreneur because it prevents your personal assets from being used to pay off business debts so that your family can depend on those assets for your future finances.

Attract and retain key employees

In today’s competitive job market, attracting and retaining talented employees is of utmost importance to make sure that your business grows with them. Many employers in India do not offer life insurance of any kind to their employees. You can take advantage of this insight and offer life insurance to make sure that they stay with you for a long time.

It will not only help in employee retention but also enhance the financial security of your team. Moreover, when they have life insurance, it will give them confidence and peace of mind so that they can concentrate on their work and personal lives.

Tax benefits

Exploring tax-saving options as a budding entrepreneur can help you save a significant amount of money. One such avenue is Section 80C of the Income Tax Act 1961, which allows you to save on taxes by deducting the premium paid for life insurance, as well as other eligible tax-saving investments.

You can invest between ₹1 and ₹1.5 lakh in a financial year towards life insurance premiums. Additionally, if you have opted for riders like critical illness coverage, you can also claim a deduction for the rider premium under Section 80D of the Income Tax Act- 1961. These deductions collectively serve to decrease your overall tax liability.

Furthermore, death benefits paid out to your beneficiaries are also tax-exempt under Section 10(10D) of the Income Tax Act- 1961.

Peace of mind

Entrepreneurship is filled with uncertainty and risk. Having life insurance in place can provide peace of mind, knowing that your loved ones and business are protected in the face of unforeseen circumstances. It allows you to focus on growing your business without constantly worrying about what would happen if the worst were to occur.

When selecting a life insurance policy, it’s essential to work with a qualified insurance advisor who understands the unique needs of entrepreneurs. Your policy should be tailored to your specific circumstances and business structure. Remember that the investment in life insurance is not just for you; it’s a safeguard for your family and a critical pillar of your business’s foundation.

In conclusion, life insurance is not just a financial tool; it’s a strategic asset for budding entrepreneurs. It offers protection for your loved ones, ensures business continuity, shields against debt, attracts and retains key employees, and provides tax benefits. Most importantly, it grants you the peace of mind to pursue your entrepreneurial dreams with confidence.

In the dynamic world of entrepreneurship, life insurance is your shield against the uncertainties of tomorrow, ensuring that your legacy and your business’s future remain secure. Don’t wait—start exploring your life insurance options today and take the first step towards a brighter and more secure entrepreneurial journey.

Disclaimer
Star Union Dai-ichi Life Insurance Company Limited is the name of the Insurance Company and “SUD Life Century Royale” is the name of the plan. Neither the name of the Insurance Company nor the name of the plan in anyway indicates the quality of the plan, its future prospects or returns.

SUD Life Century Royale | UIN: 142N083V03 | A Non-Linked Non-Participating Individual Savings Life Insurance Plan Star Union Dai-ichi Life Insurance Company Limited | IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472

Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.

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