Life insurance is meant to provide proceeds that will help to replace your income and/or pay off liabilities in the event of your death. If you are self-employed, you may have an even greater-than-average need for life insurance. Not only will you want to protect your family after you die, but you'll want to protect the financial needs of your business as well.

Why life insurance is important
Like most people, you probably get your money by working. As long as you are alive, your income-producing capability is relatively secure, and you and your family can enjoy the lifestyle you have established. Even in hard economic times, most people are industrious enough to produce an income or manage to get by until the situation improves. When an income earner dies, however, the surviving family could face economic hard times that won't end. The financial needs for the surviving family may include:

• final expenses, such as burial and funeral costs
• unpaid medical bills
• income replacement for survivors
• mortgage balance
• education fund for children
• unplanned emergency expenses

Why life insurance may be even more important for the self-employed
When the income earner is a self-employed individual, there may be an even greater need for insurance. As a sole proprietor, you are personally liable for all the debts of your business. There is no legal distinction between personal and business assets. By legal definition, a sole proprietorship terminates when the owner dies. Any losses or financial obligations at the death of the sole proprietor become the responsibility of the estate. It is possible that personal assets may have to be sold or transferred to settle business debts. Business debts may include:

• business loans
• mortgage or lease payments on business location
• accrued payments due to suppliers, vendors, consultants, employees, etc.
• taxes due to local, state, and federal taxing authorities
• fees to lawyers, accountants and other advisors to settle business affairs

Life insurance can be used to cover these financial responsibilities, as well as to provide for the ongoing needs of your family after your death.

What to do about it
Talk to use and we will help you assess your need for life insurance and design a program to fit your specific situation.

Learn More...

Life Insurance Overview | Understanding The Basics | Term & Cash Value
Coverage Amounts | Reading Policies | Planning Concerns | Life Calculator | Life Glossary

Please Note: The information contained in this Web site is provided solely as a source of general  information and resource.  It is a not a statement of contract and coverage may not apply in all areas or circumstances.  For a complete description of coverages, always read the insurance policy, including all endorsements.