Is the life of your business protected?
Your business is your life. It is your source of revenue and happiness. But have you done enough to guard it? Irrespective of big or small, your business requires some form of protection against uncertainties and you would want to do everything in your power to protect what you have worked so hard to build. What is even more important is to protect the key people that fuel the growth of your business. Losing a key employee can cause a huge impact on your business, and majorly affect its profits, as well as disturb the continuity of business.
However, you can always trust a comprehensive life insurance plan to protect your business from this possibility and any unforeseen event in the future. Life insurance plans like the Aviva Life Shield Premium financially help to minimise the impact on the business due to your or your key employee’s death by providing the Claim amount which can be used by the family to substitute your income or to offset any disruption or losses that may occur due to the unfortunate incident. With a holistic strategy that includes a life insurance policy, you can be at peace that your years of hard work, your business, will flourish.
Here are a few reasons why protecting your business with a life insurance plan is critical
Insurance for key employees:
Every employee is important. However, when we speak, particularly about your business, some employees may be more important than others. These are the key employees without whom the overall functioning and the economic stability of the business is impacted.
Imagine, what would it mean for your company, if your top salesperson or the factory operations manager who ensured that the factory is functional died unexpectedly? The results can be catastrophic. But with a life insurance policy like the Aviva Life Shield Premium, you can protect your key employees and ensure your business sails through a tough phase. Your key employees can be your full-time director, a person with a specialised skill, an employee working at various key positions, or an employee handling major responsibilities. With a life insurance policy like the Aviva Life Shield Premium that protects the life of a keyman, you can be assured that your business will navigate the daunting times.
Compensation and other benefits:
Life insurance plans not only serve to protect your business against the risk of the lives of key business employees they can also be structured to offer other benefits. In case of the death of the key employee, you can use the benefit received to adequately compensate that employee’s family, as well as use a part of the insurance benefit to ensure your business does not suffer from the loss.
For example, you hired a salesperson named Arjun 10 years ago in your factory. Arjun has over the years has proven his skills, earned high profits for the company, and also transformed his role as per requirement. Presently, his worth in concern with your business is significantly high and his absence will severely affect your business. In this case, you can take the Aviva Life Shield Premium plan with a sum assured of 10 times Arjun’s annual salary. This will make sure that your business does not suffer if Arjun passes away unexpectedly within the policy term. You can choose to pay premiums for a limited time (5 or 10 years) and keep your business protected with keyman insurance for an extended period.
Cover for solo entrepreneurs:
Now, if you think you are the sole captain of your ship with no dependence on any key people to run your company, you would still benefit from a life insurance plan like Aviva Life Shield Premium. Imagine if you were to die unexpectedly, who would suffer the consequences? The obvious answer is your family.
They would be burdened to run your business, pay off any debts, etc., while they are grieving. Also, it is not uncommon that the surviving families are cornered after the death of the business owner. A life insurance plan, like the Aviva Life Shield Premium, can be your family’s fallback option.
Prevent collateral damage:
Businesses require cash. Whether it is solo entrepreneurship or a partnership, each type of model needs funding. The most common source to obtain the desired funds is a bank. However, in most cases, the banks ask you to pledge a valuable asset, such as a property (like your home) as security against the borrowed amount. This could be horrendously burdening for the family or even your business if you were to die with the unpaid bank debt. The business and the family would be forced to sell off assets or even your home, putting their security at risk. However, a life insurance policy, such as the Aviva Life Shield Premium, is a very convenient way to cover future liabilities. Your business and family can use the compensation amount to pay for the debt and release the mortgaged asset or property. You can also choose to opt for a Decreasing Sum Assured, in line with your loan amount and payment period so that your life cover decreases as your loan liability decreases and you enjoy the benefit of a lower premium.
Inexpensive cover against risks:
At the core of it, a life insurance plan will financially safeguard your family and your business. But the best part is a life insurance plan is significantly economical and also less complicated as a risk management tool. All other options are expensive and also not tailored to suit your needs. However, with plans like the Aviva Life Shield Premium, you only pay premiums for a certain number of years at a payment consistency chosen by you and get coverage for an extended tenure. Moreover, you can also choose the payout option – lump sum, income or 50:50 of both.
You have put countless hours into your business and you expect to reap livelihood for yourself and your family from it. Hence, you need a life insurance plan like Aviva Life Shield Premium that will provide you financial support when you lose a key employee of your business, as well as act as back up to your family’s financial security if anything were to happen to you.