We know barbers and hairstylists for a transformative experience, whether it’s for a buzz cut or a complete hair makeover. And being a barber or hairstylist, you pride yourself on providing the greatest service. However, unfortunate incidents may happen within or outside your business. That’s why it’s necessary to protect yourself with the right coverage. This protection is known as life insurance. What is life insurance? How much does it cost? Let’s find the answer to these questions in the article below.
What is life insurance?
Life insurance is a necessity! It protects your family by leaving behind a non-taxable amount after your death. This income can cover your mortgage or personal loans or replace your family income to maintain their quality of life. A life insurance policy is a financial strength for the beneficiary after the death of the insured.
Why life insurance?
We now know that the purpose of life insurance is to provide income to your dependents after your death. Here are more reasons why a barber or hairstylist needs life insurance.
• Pay your debts
Even if you do not have any legal dependents, the death benefit can be used to pay any debts you owe.
• Employer insurance is not portable
The insurance offered by your employer is not portable. That means if you lose your job or leave your company, you may not have coverage.
• Nontaxable benefits
They do not count the income that your dependents will receive as a gross income. Hence, it may not tax them for this income. However, you should consult your insurance company to make sure if the income is taxable or not.
• Child care
If you are a single parent, and if you pass away, then the benefits from your insurance policy will be routed to your child’s future.
• Post-retirement
Certain life insurance policies have living benefits. That means if you are diagnosed with any terminal illness, the insurance claim can support extended care.
Therefore, make an informed decision and calculate your insurance cost today!
How Much Does Life Insurance Cost?
The cost of life insurance is subject to various factors. One of the key cost factors depends on the type of life insurance you buy. For instance, a term life insurance policy may cost less than a whole life
insurance policy. However, here are some general factors that affect life insurance rates:
• Age. You pay less premium when you are young as the chance of death is smaller.
• Sex. It is said that females have a life expectancy longer than males. So, this factor may affect your cost.
• Health. If you have any health issues, then it may result in higher life insurance rates.
• Lifestyle. Your sedentary lifestyle or your dangerous occupations can have a major impact on your life insurance cost.
Key Takeaways
Being known for local hangouts, may it be for haircuts, scalp massages, razor shaves, barbers life is difficult! Therefore, it is necessary to take care of yourself first. Always, invest the appropriate percent of income for the insurance premium and let your nominee know about the insurance premium.
Remember, a dollar saved is 2 dollars earned!
