Last Updated on Dec 20, 2019 by James W
If you want to succeed in the competitive Latin America business market, you’ll need to think long-term and put together a five-year business plan. Latin America offers plenty of opportunities in oil, energy and other lucrative niches, but it’s not about overnight success. To get your piece of the pie, you should put together a comprehensive and strategic business plan, which includes life insurance. Life insurance will protect your business from losses which relate to the passing of important executives. By determining which staff members are vital to your organization, figuring out how much life insurance is needed for important employees and then shopping around for the right life insurance policies, you’ll protect your business from peril.
Which employees are irreplaceable?
You’ll need to take out life insurance policies on employees who are vital to the success of your company. To decide who qualifies, think about how much profit your employees generate. Some of them form the backbone of your business. You should also consider whether losing a specific employee will damage your company’s integrity. This part of long-range business financial planning is essential. If you fail to create a long-term business plan that includes life insurance, the passing of an employee may lead to financial disaster at your company. When you decide who’s irreplaceable, you’ll be ready for the next step, which is deciding how much life insurance coverage is appropriate for your most valuable staff members
How much life insurance is needed?
Right now, Latin America accounts for 3.1 percent of insurance premiums worldwide. To determine how much life insurance is needed to protect your business, crunch the numbers. How much money would you company lose if a primary and essential employee passed away? This employee might be you (the business owner) or someone else. Most business owners opt for one hundred thousand to twenty million dollars in coverage. You may be able to save on premiums if you buy protection for a couple of people, or more, under a single policy. When you buy enough life insurance to counteract the negative effects of an important employee’s passing, insurance monies will allow company principals to keep running the business with little disruption.
Shop around for affordable policies
Check out the biggest insurance providers in Latin America and then shop around for policies which offer the most coverage for the most affordable prices. It’s important to research the reputations of these insurance companies as well. Do they get great reviews online, or not? When shopping around, compare business term life insurance policies. They are the types of policies that enhance long-term business plans.
Don’t forget about life insurance
Now that you know why life insurance for businesses is so important, don’t forget to integrate it into your business plan. When you decide which staff members are pivotal to successful business operation, decide on a level of coverage that will protect your business if a vital employee passes and then shop around for an affordable life insurance policy, you’ll be covering all of the bases. Insurance is a tool that Latin American business owners may utilize to protect their long-term business interests.
