Life Insurance for the Self-Employed

Life Insurance for the Self-Employed

As individuals, we buy life insurance to provide for our loved ones in the event of our death, but for those who are self-employed, life insurance can be doubly important. You’ll want to protect not only your family after you die but also the financial needs of your business.[emember_protected custom_msg=”Click here and register now to read the rest of the article!”]

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, which sudden financial needs including funeral and burial costs, unpaid medical bills, mortgage and other debts, education funding, and income replacement,

As a sole proprietor, you are personally liable for all of the debts of your business, with no legal difference between personal and business assets. A sole proprietorship ends when the owner dies, so any losses or financial obligations at your death become the responsibility of your estate. It’s possible that personal assets might have to be sold or transferred to pay off business debts, such as loans; mortgage or lease payments on a business location; payments due to suppliers and employees; local, state, and federal taxes; and fees to lawyers, accountants, and others to settle business affairs. Life insurance can be used to cover these debts, as well as to provide for the needs of your family after your death.

Ask your financial or insurance professional to help you assess your need for life insurance and design a program that fits your needs.

As federal and state tax rules are subject to frequent changes, you should consult with a qualified tax advisor prior to making any investment decision.

Raymond James & Associates, Inc., member New York Stock Exchange/SIPC.

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column by BRAD DANTZLER

BIO: Brad Dantzler is a trusted financial advisor with more 18 years of experience. A Winter Haven city commissioner, he is active in his church and community and currently is president of the Winter Haven Library Board. He has been an active President’s Club member for six years. [/emember_protected]