Life Insurance
The Importance Of Life Insurance For Small Business Owners
The Importance Of Life Insurance For Small Business Owners
27 May 2024

If you’re an entrepreneur or small business owner, life insurance can help you protect it.

When you hear the words “life insurance”, most people think of how it can create a must-have safety net to protect their family’s financial future. However, it can also be an essential tool for small business owners.

What is life insurance?

In a nutshell, life insurance works like this – you pay a monthly premium in return for a set amount of coverage. If the insured life passes away, this lump sum is paid out to the policy owners beneficiaries. This is what makes it so important for families. It's a way to ensure that, even if the policy owner isn’t there to provide for their loved ones, they’ll still have the financial means to pay for the little things, like day to day expenses, as well as the big ones.

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If you own a business, then business insurance is a must and MiWay makes it easy, offering multiple types to help you protect your money-makers. These include Business Property insurance to cover your building and its contents and even Business Interruption insurance that can cover you for any financial losses due to things that might interrupt your workflow. (Imagine what you’d do if you arrived at the office to find it had burned down in the night? Phew! Thank goodness for insurance!) While it’s great to know you can insure material things, what about you, the business owner? Or your business partners? Or the people you employ?

Why life insurance is a must for small business owners 

As an entrepreneur or small business owner, you’ll always have financial obligations or might be in a position where you’re waiting for someone to repay you money that is owed. If you or they had to pass away, you should know that debts don’t die with you. Also, what would happen if your business partner or an employee, someone who you relied on to help you make an income, had to suddenly pass away? If any of these scenarios make you nervous, you might want to consider investing in life insurance.

If you have insurable interest, life insurance can protect it

Many people don’t realise that you can take out a policy for anyone, provided you can show insurable interest. This means you prove you have a reason for covering the life assured, proving that, should they pass away, you’ll suffer a financial consequence. As an example, a creditor who is owed money can take out a life insurance policy on another individual up to the amount owed to them due to an insurable interest. In this instance, the creditor needs the consent of the person to be insured.

A business relationship is another situation that has grounds for insurable interest if proved to be in the best interest of the insurer that the insured stays alive. These relationships can include business partners, major stockholders or key employees of a company.

At the end of the day, life insurance can be a valuable tool for anyone running a small business – or even a big one – so why not get a quick quote from MiWayLife today? Our low premiums might surprise you.

Did You Know:

You can now take out life cover with us online in a few simple steps. No calls and no agents! Make sure to take care of those you love today by buying MiWayLife cover online.

Need more information on MiWayLife? Read about our life insurance product, or get a life insurance quote in 30 seconds. Alternatively, call us on 0860 64 54 33 .
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Terms and conditions apply. Eligibility, cover and benefits are determined on individual risk profile. MiWayLife is an authorised FSP (No. 45741) and its product offering is underwritten by Sanlam Life Insurance Limited, a registered long-term insurer. MiWayLife is a division of Sanlam Life Insurance Limited - Reg No. 1998/021121/06