Whether you’re a newly-minted entrepreneur or you’ve been running your Bloomfield Hills, MI business for years now, you might be interested in life insurance. But what does life insurance have to do with business, you might ask. Primarily, it’s a benefit on a personal level for most people.
For entrepreneurs like you, however, life insurance from Phil Klein Insurance Group can help expand your business.
1. Life Insurance As An Investment. Even though life insurance is meant primarily as a form of financial protection to cover your responsibilities after death, you can use it as a form of investment, too.
You can invest with either term life insurance or permanent insurance. If using permanent insurance, you can invest with the cash value component of your policy. If you buy a term policy instead, you can simply invest the difference.
Either way, you can leverage your business by using your borrowed money to expand it. whether you want to hire more employees, invest in a larger office space, or upgrade your company software, any such investment can be a great business asset.
2. Life Insurance As Collateral. If you don’t want to bother with using your life insurance as a direct investment, you can offer your policy up as collateral for a business loan.
If you use your term coverage as business collateral, this keeps all your tangible assets safe while allowing you to explore your business’s full potential. You no longer have to toy with putting up your home or other property as collateral for a business loan.
Once you pay off your loan, you can then choose to invest your life insurance in a different way. You can also choose to sell the policy and use the money toward your business.
3. Life Insurance As Protection. In its simplest form, life insurance can be a great asset to your business. You can protect your assets by giving your company a financial cushion to fall back on in case of your passing.
In this case, you might like to invest in key person life insurance. This way, your policy is tied to your company, and the company directly profits from the payout.
Are You Interested In Improving Your Business With Life Insurance?
If you’re ready to invest in your business through a life insurance policy in West Bloomfield, MI, call the Phil Klein Insurance Group today. A friendly agent is ready to be at your disposal anytime.