In my previous blog post on Term Life Insurance – For Individuals, I explained what Term Life Insurance is, as well as the Pros, Cons and the Different Type of Term Insurance which most Singaporeans/PR have.
Term Life Insurance can also help Business Owners as well as people who own a property/ a few properties.
For People who own a property/a few properties
An asset is not truly an asset until it is fully paid off. Most people in Singapore who owns properties are on Mortgage Loan.
When the property owner passed on before discharging the mortgage, the lender (i.e. bank) has the legal ownership of the property instead of the deceased person’s estate. If there is insufficient cash from the estate to settle the outstanding loan, the bank has every right to force sell the property. In this situation, the deceased family members could be left without a home.
For Business Owners
- Keyman Insurance – To insure key employees in the company
Key man insurance is a life insurance on the key person in a business. In a small business, this is usually the owner, the directors or perhaps a key employee or two. These are the people who are crucial to a business-the ones whose absence would sink the company.The proposer will be the Company and the life assured will be the Key person. When the key person passed on, the lump sum will be paid out to the company.
The company can use the insurance proceeds for expenses until it can find a replacement person. The death of the top sales performer in a small company can cause the company to close down.
2. Partnership Insurance (To insure one of the Director/Co-owner of the company)
For Partnership Insurance, it is slightly more complex as it involves the Buy-Sell Agreement.
If you have any queries pertaining to the above, feel free to contact me at 81029976 so that I will be able to help you protect your business and well as your properties.
Your Dreams, My Goal. ♥