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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