Are you a businessman? Do you already have life insurance?

Although life insurance is well known in the world of real estate credit, for those who do not have this obligation, life insurance can be seen as a redundant or unnecessary investment. But will it really be like that? Having life insurance is important for people who want to ensure financial stability for themselves or their family members in the event of disability or death. For entrepreneurs or liberal professionals, the importance of this type of insurance increases since it can condition the continuity of the business.

If you have your own business or are self-employed (whether you are a doctor, lawyer, architect or someone else), we give you 3 great reasons to buy life insurance.

3 Reasons why an entrepreneur or self-employed person should have life insurance

1. Protect your business financially

The business structure of Portugal is mainly made up of micro and small businesses that are ultimately highly dependent on their entrepreneurs, both financially and operationally. This means that if something happens to them (death, serious illness or even disability) they have little ability to recover and have a hard time surviving.

Therefore, it is important to have a Plan B for this situation, which requires a considerable financial cushion in addition to being unpredictable. Not only to overcome the most difficult moments, but to have the strength to readjust to a new reality.

2. Guarantee the financial security of your family in the event of death

Nobody likes to talk about death, but planning a course of action is important in all situations. Not only for you, but for the ones you love the most.

When it comes to successful businesses, entire families often depend on the resulting income. Or even having multiple people from the same family working for the same company can be highly addictive.

So if the worst happens, both companies and households find themselves in a very difficult situation and their financial stability is at stake.

Life insurance guarantees that in the event of death (natural or accidental), the family will benefit from financial support.

3. Safeguard financial support in case of disability

Life insurance covers not only the death of the insured, but also the situation of disability . This can destabilize the professional life of the businessman or liberal professional, making it impossible for him to work.

With the amortization of the capital contracted in the insurance, you can maintain financial autonomy, without burdening your family with extra expenses, focusing on what is most important: your health.

Let's give you a practical example:

Imagine that a 50-year-old businessman decides to buy life insurance with insurance funds of 1 million euros. For example, the annual premium owed to the insurance company may be around 5,000 euros.

This amount may seem large at first. However, if you treat it as a business expense (among all annual expenses) and subtract the business tax payment (meaning, in practice, most of the expense paid isn't really a business expense), you can change your mind .

A capital of €1 million may also be the only way to keep the company going if the entrepreneur suffers an injury resulting in death or disability. Remember that in many cases, the related business is the main source of income for the family.

If you are self-employed or an entrepreneur, you should know that at DS SEGUROS we have a team of experienced brokers who have all the knowledge to help you find the best solution for you. Contact us for more information