Life insurance is often associated with protecting the people who depend on you financially — typically a spouse, children, or […]
Owning a business often means carrying responsibilities that go beyond your own paycheck. Your income may support your family, while the business itself may have loans, ongoing expenses, employees, or other financial commitments that depend on you.
That can make life insurance an important part of your overall financial planning. The right coverage can help provide financial support for the people who rely on you and give them more flexibility if something unexpected happens.
But not every business owner has the same needs. Someone just starting a business may be focused on short-term debts and keeping costs manageable, while an established owner may be thinking about longer-term family responsibilities or leaving money behind for loved ones.
That’s why it helps to look at what you want to protect and how long you may need the coverage. In this article, we’ll look at Term 10, Term 20, and Term 100 life insurance and show how each option may fit different business-owner situations.
One of the easiest ways to narrow down your life insurance options is to think about how long you may need the coverage.
As a business owner, ask yourself:
Your answers can help point you toward the right type of policy.
Term 10 can work well for shorter-term needs, such as a business loan or financial responsibility you expect to decrease over the next decade.
Term 20 may be a better fit for longer commitments, such as a mortgage, raising a family, or protecting income during your main working years.
Term 100 is designed for people who want lifetime protection rather than coverage that ends after a set number of years.
The best fit depends on what you are protecting, how long that need is likely to last, and how much coverage you want along the way.
Example 1 — The New Business Owner: Term 10
Situation:
Imagine a 35-year-old who has recently started a contracting business. They’re carrying a business loan, financing equipment, paying a mortgage, and supporting a young family. The next several years are likely to be some of the most financially demanding as the business gets established and larger debts are gradually paid down.
Why Term 10 may fit:
Term 10 life insurance can be a practical option when the biggest financial responsibilities are expected to decrease over the next decade. It can provide a meaningful amount of coverage for a set period while often keeping the initial premium lower than a longer-term or permanent policy.
When it may not be enough:
If the owner expects their family or business to depend on their income well beyond 10 years, a longer-term option may provide a better match for those ongoing responsibilities.
Example 2 — The Established Owner with a Growing Family: Term 20
Situation:
Imagine a 42-year-old who owns a successful small business and has young children at home. They’re still paying down a mortgage, managing ongoing business obligations, and want to make sure their family would have financial support until the children are older and major debts have been reduced.
Why Term 20 may fit:
Term 20 life insurance can be a good match for longer-term responsibilities like these. A 20-year term can provide protection through an important stage of family and business life, while also locking in the premium for a longer period.
When it may not be the best fit:
If the owner’s main goal is to leave money behind no matter when they pass away, temporary coverage may not fully meet that need. In that case, a permanent option could be worth considering.
Example 3 — The Long-Established Business Owner Thinking About Legacy: Term 100
Situation:
Imagine a 55-year-old business owner who is beginning to think seriously about retirement. Their mortgage is mostly paid off, their business is well established, and their financial priorities are starting to shift. Rather than focusing only on temporary debts, they want coverage that can remain in place for life and help with final expenses, estate-related costs, or leaving money behind for loved ones.
Why Term 100 may fit:
Term 100 can be a practical option for someone who wants lifetime protection with fixed premiums and no investment component. If the need for coverage is expected to continue beyond the next 10 or 20 years, permanent protection may be a better fit than temporary term coverage.
When it may not be the best fit:
If the main priority is securing a very large amount of coverage for a limited period, such as during peak earning years or while major debts are still outstanding, a Term 10 or Term 20 policy may be more suitable.
Example 4 — When Your Needs Overlap
Sometimes, a business owner may have both temporary and lifelong financial needs.
For example, a 40-year-old owner might want a larger amount of Term 20 coverage to help protect their family during the years when the mortgage, business obligations, and income needs are highest, while also considering a smaller amount of permanent coverage for needs that may remain for life.
The key is to match each type of coverage to the financial responsibility it is meant to protect.
Your life insurance needs can change as your business and personal life evolve. The coverage that made sense when you first started your business may not still be the right amount or type of protection several years later.
It may be a good time to review your coverage if you:
A quick review can help make sure your coverage still reflects the people, debts, and financial responsibilities that matter most today.
As a business owner, your time is valuable. Once you have a better idea of the coverage that may fit your business and family needs, the next step is finding a simple way to put that protection in place without adding more appointments or paperwork to your schedule.
With our plans, the application process is simple and convenient. There is no medical exam, and you can answer a short health questionnaire over the phone with a licensed advisor.
And there’s more good news: your premium stays fixed for the selected term, making it easier to plan your costs while keeping coverage in place during the years you need it most.
Get a custom quote and speak with a licensed advisor about which coverage option may fit your business, family, and long-term plans.
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