Are you Running a small business? are you the only breadwinner of your family?

Siddiqui By Siddiqui, 11th Mar 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/a_9zqn2z/
Posted in Wikinut>Money>Insurance

Decide your monthly pension, death benefits by your self.
In this page i try to alert those who are one man show in their family and running a small business.

How You can secure the future of your beloved ones if you are the only breadwinner of your family?

Those who are employees of government or even in any private organizations at least have no worries about the financial securities for their beloved ones, in case, God forbid they dies early due to any accident or disease. Their employer keep them insured under group insurance, their families get Provident Fund benefits, Gratuity or pension etc.

What about those who are self employers and running their own business in a small scale like a small shop/general stores/barber shops/small tea shops etc, and they are the only breadwinner of their family? what ever they earn, they re-invest it in their running business for gaining more daily profit.

How these facilities can avail if the person is not employee and doing his own business?

Just for a second if imagine that an owner of a shop dies, he has one spouse and 2 school going kids. Who will be their Financial supporter? what option they have to clear the debts of their dead breadwinner? what options are available for running daily routine and paying school fees etc.
Answer of all the question here is LIFE INSURANCE POLICY.

those who are running this kind of small business and they are one man show in their family, they must buy a Life Insurance Policy. Like an employee have a mandatory deductions from his/her salary on account of Provident Fund/Group insurance/Gratuity etc such business men should save at least 10% of their daily income voluntary, that make a huge saving in one year and by this saving if they buy a Life Insurance policy with few riders, like regular monthly income (FIR) wavier of premiums (WP) Accidental indemnity benefits (AIB) they can have a Peace of Mind and by having these coverages they should not worry about the financial security for their families.

Maturity Benefits of this Policy,

On maturity if the plan was for 20 years, you will get about 4 times of the basic sum insured of your policy. It is same like a Govt. employee get retirement benefits, you will also get a handsome amount in your old age.

Hereunder i am giving brief description of the riders:-

WP (wavier of Premium):- Under this rider premium will be waived if the policy holder have long term sickness that keep him away from earning, all the benefits of the policy will run smoothly.

AIB (Accidental Indemnity Benefits):- Under this rider, policy holder will get compensation if he gets injured in result of any accident, like hospitalization, weekly cash compensation, from 10% to 100% equal to the basic sum insurance amount is also payable in different nature of injuries. Double of the amount of the insurance is payable, if the policy holder dies due to any accident. Full policy amount is payable if the policy holder becomes permanent total disable in result of any accident.

FIR (Family Income Rider):- Under this rider beneficiary of the policy is entitled a prefix percentage of the basic sum insured, in addition to the principal amount of the insurance policy. Duration of this annual income will be the original date of the maturity of the policy. Suppose the term of the policy was 20 years, but policy holder dies after 3 years, for remaining 17 years, beneficiary of the policy holder will get annual income, amount of the income will depend on the prefix percentage of the policy, it can be from 10% to 50% of the basic sum insured.

Hey: what are you thinking? calculate now that how much is the 10% of your daily income? and call a representative of any reputed insurance company of your area, he will calculate the rest for you, do not forget to mention about the above extra riders with your Life Insurance policy.

Tags

Childcare, Gift Idea, Insurance, Retirement Income, Saving, Shop, Small Business

Meet the author

author avatar Siddiqui
From Pakistan in the field of journalism, We can share our experience for others by writing if they are useful in any sense.

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Comments

author avatar Retired
13th Mar 2011 (#)

veryy interesting and well done, keep up the great work.

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author avatar JohnH
14th Mar 2011 (#)

well done.

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author avatar Siddiqui
14th Mar 2011 (#)

Thanks

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author avatar Siddiqui
14th Mar 2011 (#)

Thank you.

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