Life Insurance for the Self-Employed
If you're like most people, you bought life
insurance to provide for your loved ones in the event of your death. But
because you're self-employed, you may have an even greater need for life
insurance: You'll want to protect your family after you die, as well as protect
the financial needs of your business.
Why life insurance is important
As long as you are alive and healthy, your
income-producing capability is relatively secure, and you and your family can
enjoy the lifestyle you have established. If you were to die, however, your
family could face hard economic times. Your family's financial needs may
include:
•Final
expenses, such as burial and funeral costs
•Unpaid
medical bills
•Income
replacement
•Mortgage
balance
•Debt
repayment (credit cards)
•Education
fund for children
•Emergency
expenses
Why life insurance may be even
more important when you're self-employed
As a sole proprietor, you are personally
liable for all of the debts of your business. Legally, there is no difference
between personal and business assets. By definition, a sole proprietorship ends
when the owner dies. So, any losses or financial obligations at your death
become the responsibility of your estate. It is possible that personal assets
may have to be sold or transferred to pay off business debts. Business debts
may include:
•Business
loans
•Mortgage
or lease payments on business location
•Payments
due to suppliers, vendors, consultants, employees, and so on
•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
debts, as well as to provide for the ongoing needs of your family after your
death.
What to do about it
Ask your financial professional or insurance
representative to help you assess your need for life insurance and design a
program to fit your needs.
CornerStone Financial
Whether your
nest-egg is worth millions or thousands,
You and your
family deserve it more than the government....
We are here to help you with all of your
financial and insurance needs. Our skilled professionals are licensed with
over 100 top name companies and can help you gain a better understanding of the
concepts behind insurance including investing, retirement and estate
planning. There are literally thousands of products to choose from,
but we can help pinpoint what is best for you and your situation. Please
do not hesitate to contact us if you have questions.
Contact:
Eric Tuttobene
President/CEO
CornerStone
Financial
(615) 427-8780
IMPORTANT DISCLOSURES
The
information presented here is not specific to any individual's personal
circumstances.
To the extent
that this material concerns tax matters, it is not intended or written to be
used, and cannot be used, by a taxpayer for the purpose of avoiding penalties
that may be imposed by law. Each taxpayer should seek independent advice from a
tax professional based on his or her individual circumstances.
These
materials are provided for general information and educational purposes based
upon publicly available information from sources believed to be reliable—we
cannot assure the accuracy or completeness of these materials. The information
in these materials may change at any time and without notice.
