Universal Life Insurance for Business Owners
You may have heard of Universal Life insurance as an option to secure you and your loved one’s financial future. What you might not know is that universal life insurance is also a solid choice for business owners, helping them combat financial challenges.
If you’re in the market for insurance that works for you and your business, universal life could be a great solution, and we’re here to tell you why.
How Universal Life Insurance Works
A lot of business owners skip over the powers that can come from a policy like universal life insurance. Some policies have a cash value element even though they are considered life insurance that can help business owners safeguard their financial prospects and have something to fall back on just in case they run into difficulties along the way.
Business owners always have to deal with some kind of risk, sometimes falling in the red to keep production running when sales drop down. On top of that, unforeseen costs can take business owners for a loop, requiring that they fork out a large lump sum that might be hard to come by.
With the cash value option with universal life insurance, policyholders can take money out of the cash value of their policy via withdrawal or loan. One of the reasons why this option is available is that it pulls money from the amount passed on to beneficiaries, allowing policyholders to access cash when they need it.
The cash value option is not the only great option that comes with universal life insurance, as others called riders come into play too. Some of them include death benefits and long-term care riders, all of them allowing policyholders to tap into their cash when they need it.
Before Hunting for Insurance
Even if a policy has just the right price, it’s not always the best for you and your needs. Before you start your hunt, find those that offer key features that make your future goals possible, no matter how big they may be.
Being a business owner, you have more than a few things to think about, which is why you should assess your top concerns before you take off and start looking.
Top Benefits of Universal Life Insurance for Business Owners
Business owners can benefit quite a bit from universal life insurance. Below, we’ll introduce you to the ways that you can benefit, especially when it comes to tax advantages, something that all businesses are constantly on the hunt for.
Tax-Deferred Growth
When you choose universal life insurance, you score a thing called tax-deferred growth. With this, your funds will grow exponentially over time. That means that you could have a solid investment that you can collect from if you need to.
Zero Risk
There are not many investments out there that you can find without some kind of risk. As a business owner, you already deal with a lot of risks, and adding more to your plate isn’t feasible.
That’s why universal life insurance could be a great option, coming without the risk. The cash values have what is referred to as a “floor,” which means that your principal will always be there, no matter what is happening in the market.
No Maximum to Investments
Even if you invest into your own retirement, there is possibly a cap somewhere that limits the amount you can invest per year. With universal life insurance, the sky is the limit, allowing you to invest any amount you want to year after year.
You can continue you fund your account over time and watch as your investment adds up and continues to grow to help you if you get into financial trouble or help you expand when the time comes.
Access to Cash
Other popular retirement plans also allow tax-deferred growth but, there will still be tax liabilities somewhere down the line. Universal life insurance is nothing like that, allowing you to access your cash without any added taxes. It comes with full access to your investments via cash without all of the hassles.
Business Purchases
Business is something that calls for continuous investment, growing, expanding, and improving over time. However, securing the funds to do that can be challenging and could cost an arm and a leg.
That’s where a universal life insurance policy could come in handy, allowing holders to borrow from their life insurance policy for the things that they need. There won’t be any penalties and no added taxes if you do, two things that all businesses are looking for.
Business Security
It’s not the most exciting topic but, death is something that every business owner should think about. In the event of an unexpected incident or death, what will happen to the company?
Universal life insurance is the umbrella term for life insurance comes with protection that will pass on the remaining policy to partners within the business, giving them the funds, they need to keep the business running as usual. The buy and sell agreement within the policy is highly customizable, allowing each company to choose the policy that suits them.
Protection for Loved Ones
The policy also allows holders to pass on any remaining amount to their family, ensuring that they are protected, even if the unexpected happens. As a business owner, you not only have to think about your business but also your family, choosing a policy that will secure everything from your business and beyond if you ever need it.
Find your Policy Today To Secure your Tomorrow
Life insurance is something that we all need, keeping us and those we love safe when the unexpected happens. It’s never too early to start thinking about a life insurance policy, getting the process started today. Because there are many options out there, it’s recommended to work with a professional life insurance agent that understands the investment side of things too.
For a unique perspective and a knowledge base that’s different from what you’ll typically find out there, give Sim a call. It’s not just about financial gain but for finding a policy with the right fit, something that only agents that know the industry like the back of their hand can do.
Essential Planning for Financial Security
Helping business owners and self-employed professionals grow retained earnings tax-free, pass more wealth to the next generation, and protect their biggest asset – themselves, the executive of the business by acquiring a key person life insurance policy.
Other FAQs Regarding Life Insurance as a Business Owner
- How Does Life Insurance Policy Work for Business Partners?
- How can I Protect a Business Loan with Life Insurance?
- What Are Some Myths Business Owners Believe About Life Insurance?
- How Can I Protect My Employees With Life Insurance?
- What Are The Benefits of Life Insurance For My Business?
- How Much Does Life Insurance Cost for Small Business Owners?
- Why Should I Choose Term Life Insurance As a Business Owner?
- Can My Business Pay for My Life Insurance?
- Does Whole Life Insurance Accumulate a Cash Value for My Business?
- What Are My Life Insurance Needs As a Business Owner?
- As a Business Owner, Why Should I Select Whole Life Insurance?
- How Does Key Person Life Insurance Work?
- Is Life Insurance Taxable in Canada For Small Businesses?
- How can Life Insurance can Help Me as a Small Business Owner?
- How can Whole Life Insurance Help my Small Business?
- Why is Life Insurance Important as a Business Owner?
- What Types of Life Insurance is Available to Me as a Business Owner?
- Can I Purchase a Group Life Insurance Policy for My Company?
- Are There Any Strategies That I Should Follow When Purchase Life Insurance for My Business?
- What are The Best Life Insurance Products Available to Business Owners?
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