Beyond Just Insurance for Your Business
Your contracting business represents years of work, built relationships, and accumulated expertise. Life insurance protects all of that for your family if something happens to you.
Why Construction Owners Face Elevated Risk
Construction consistently ranks among the most dangerous industries. Fatal injury rates run about three times higher than average. Equipment accidents, falls, and environmental hazards are constant factors.
This elevated risk makes life insurance both more important and sometimes more challenging to obtain. But with proper guidance, affordable coverage is available for most contractors.
Who Depends on Your Business
Consider everyone affected if you died tomorrow.
Family Members
Spouse, children, aging parents you help support. They depend on income your business generates.
Business Stakeholders
Partners who might need to buy out your share. Key employees whose jobs depend on business continuity. Subcontractors who rely on your projects.
Financial Obligations
Personal mortgage and debts. Business loans and equipment financing. Projects in progress that need completion.
Types of Coverage Available
Term Life Insurance
Coverage for a specific period at the most affordable rates. Best for covering mortgages, business loans, and children's dependency years. Typical terms are 10, 20, or 30 years.
Whole Life Insurance
Permanent coverage with guaranteed cash value growth. Best for estate planning, leaving a legacy, and situations requiring lifetime coverage.
Universal Life Insurance
Permanent coverage with flexible premiums. Good for contractors with variable income who want permanent protection with some flexibility.
Business Applications
Key Person Coverage
Protects your business against the financial impact of losing crucial personnel. The business owns the policy and receives proceeds to cover recruiting, training, and transition costs.
Buy-Sell Agreement Funding
If you have partners, life insurance can fund buyout arrangements. When a partner dies, insurance proceeds allow surviving partners to purchase the deceased's share from their estate.
Business Debt Protection
Life insurance can cover outstanding business loans, protecting your family from inheriting business debt.
How Much You Need
Income Replacement
Calculate how much annual income your family needs. Multiply by years of coverage desired. For a contractor earning $150,000 needing 20 years of replacement, that's $3 million as a starting point.
Add Business Considerations
Buy-sell funding amounts if applicable. Business debts your family might inherit. Key person replacement costs.
Subtract Existing Resources
Existing savings and investments. Social Security survivor benefits. Other life insurance in place.
Getting Approved
Occupation Matters
Insurance companies classify construction trades by risk. Office-based contractors and supervisors often get standard rates. Field workers typically pay 10-25% more. High-risk trades like roofing may pay significantly more.
How to Improve Your Application
Document your actual duties. If you're mostly supervisory now, emphasize that. Highlight safety certifications and programs. Address any health concerns proactively.
Common Mistakes
Relying on Group Coverage Only
Employer or association coverage ends when you leave. Amounts are usually inadequate. You can't take it with you.
Underestimating Needs
Many contractors assume their spouse can sell the business. Reality is that business value drops dramatically without the key person. Goodwill evaporates quickly.
Waiting for the Right Time
Every year you wait, premiums increase. Health issues can develop. Insurability isn't guaranteed.
Common Questions
Can I get coverage with a high-risk occupation?
Yes. Rates may be higher for certain trades, but coverage is available. We work with carriers experienced in construction underwriting.
Is life insurance tax-deductible for my business?
Personal coverage premiums aren't deductible. Key person and buy-sell insurance have specific tax rules. Consult your accountant for your situation.
What if I have health issues?
Many conditions are insurable, sometimes at standard rates. Even serious conditions often have options. Guaranteed-issue products exist for situations where standard underwriting isn't possible.