The world of business can be alluring and exciting. The idea of being your own boss, doing something you love, and running a company all by yourself is in itself a dream for any working person. However, as fascinating as the thought of running your own business may seem, you need to be prepared for any uncertainties. To start with, your profits and sales depend on a host of factors and may not be the same every month. This is why insurance for entrepreneurs is essential. Read on to know more.
Need for life insurance for entrepreneurs
As an entrepreneur, a life insurance plan is important for you for the following reasons:
No fixed income
Salaried class individuals usually have a set income each month. This makes it easy for them to save consistently and create a pool of savings for unexpected situations. However, with no fixed or stable income at hand, managing various costs and personal expenses while running a business can be difficult sometimes. This implies that your savings too could be insufficient to cater to the needs of your family in your absence. A life insurance plan can offer your loved ones the funds they will require to meet their financial needs on a day-to-day basis.
High loan amounts
Right from purchasing equipment to hiring employees and ensuring all operations are carried out as planned, setting up a business involves heavy investment. Most entrepreneurs turn to business loans to meet these costs. While this is a great way to fuel your business, interest rates on these loans can be high. Depending on the loan amount, interest rate, and tenure, you may end up repaying the loan for many years to come. In case of an unforeseen eventuality, the burden of these loans can fall on your family. A life insurance plan can, thus, help them settle your loans as well as carry on with their lives as before.
Life insurance provides tax benefits
Life insurance does not only benefit your nominee. It also offers you many advantages in the form of tax* benefits. Income tax for a self-employed person can be overwhelming. Life insurance lets you save some of this tax* and at the same time provides you with a safe space to save for your family’s future. Moreover, the money that you save in taxes can be further invested in your business.
Term insurance for entrepreneurs
As an entrepreneur, a term insurance plan can be an ideal pick for you. The high coverage of a term plan secures your loved ones, and the affordable premiums allow you to purchase a policy without compromising on your business’s financial needs. Moreover, if your spouse is financially dependent on you or is working in the same business as you, a term insurance policy can enable your loved ones to retain their current standard of living. As the primary earning member of your family, a term plan becomes a necessity to safeguard the future of your family, including your children.
The ICICI Pru iProtect Smart Term Plan is one such term plan that meets almost everyone’s checklist, regardless of which income group they come under. The plan offers life cover` till the age of 99, ensuring that your family is always protected financially. Moreover, the premiums are quite affordable. The plan also provides you with a critical illness cover^ (optional) that can be used to pay for the cost of treatment of 34 critical illnesses^. In addition to this, the term plan offers a permanent disability^^ cover and an accidental death benefit+ (optional). So, you stay protected against all possible odds.
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` Life cover is the benefit payable on the death of the Life Assured during the policy term.
^ Accelerated Critical Illness Benefit (ACI Benefit) is optional and available under Life & Health and All in One options. This benefit is payable, on first occurrence of any of the 34 illnesses covered. Medical documents confirming diagnosis of critical illness needs to be submitted. The benefit is payable only on the fulfillment of the definition of the diagnosed critical illness. The ACI Benefit, is accelerated and not an additional benefit which means the policy will continue with the Death Benefit reduced by the extent of the ACI Benefit paid. The future premiums payable under the policy will reduce proportionately. If ACI Benefit paid is equal to the Death Benefit, the policy will terminate on payment of the ACI Benefit. To know more in detail about ACI Benefit, terms & conditions governing it, kindly refer to sales brochure. ACI Benefit term would be equal to policy term or 30 years or (75-Age at entry), whichever is lower.
^^ On diagnosis of Permanent Disability (PD) due to an accident, the future premiums under your policy for all benefits are waived. To know more about definitions, terms & conditions applicable for permanent disability due to accident, kindly refer sales brochure of ICICI Pru iProtect Smart.
+ Accidental Death benefit (ADB) is up to ₹ 2 crores (subjected to underwriting guidelines). ADB is available in Life Plus and All in One options. In case of death due to an accident Accidental Death Benefit will be paid out in addition to Death Benefit. Accidental Death Benefit will be equal to the policy term or (80-Age at entry), whichever is lower.
* Tax benefits are subject to conditions under Sections 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.
ICICI Pru iProtect Smart UIN (Non-Linked Non-Par Life Individual pure risk premium product).