Life Insurance for Business Owners: Why Every Small Business Needs It

Life Insurance for Business Owners: Why Every Small Business Needs It

To an owner, a small business is everything for them. Small businesses often provide what large businesses don’t, such as goods and services at a more affordable rate, wholesome customer service, and direct growth to the community it serves. 

In Canada, small businesses make up 37.5% of the private sector gross domestic product, and employ almost two-thirds of the private labour force; this accounts for a remarkable 7.7 million Canadians. According to, “Entrepreneurs are the engine of the Canadian economy”. Small businesses also contribute to their communities, supporting the local economy through taxes and sponsoring neighbourhood associations such as youth sports teams, social clubs, and fundraising events for charities.

The ongoing health of small businesses is vital to the economy. The right mix of insurance policies can help cushion businesses financially if the owner or another key decision-maker unexpectedly becomes ill or passes away.

Table of Contents

How Life Insurance Benefits Small Business Owners

The owner of a small business plays an essential role in its day-to-day operations; if they or another key decision-maker becomes critically ill or suddenly passes away, the viability of the business could be at risk. Among the things that could be threatened are:

  • Key relationships with suppliers and customers
  • The security of the business’s employees and their families
  • Relationships with community organizations
  • Relationships with creditors
  • Succession planning
  • The reputation of the business as a dependable supplier

By providing a financial safety net at a crucial time, life insurance and critical illness insurance can buffer these potential problems by ensuring the business can continue to operate, service debt, pay bills, hire and train new staff, and so on.

Business Continuity

Every small business should have a short-term continuity plan, and a long-term succession plan in place in order to ensure the business can continue to function under changes in leadership.

Short-Term Continuity Planning

Long-Term Succession Planning

Term vs Permanent Life Insurance

A business owner may choose to protect their business using term life insurance, whole life insurance, or a combination of both.

Term Life Insurance

Permanent Life Insurance


How Secure Is Your Business in Terms of Insurance?

For the last ten years, the insurance professionals at Group Enroll have been providing businesses and individuals alike with insurance products that not only cover required services and medications, but ones that provide access to preventative ones such as massage, chiropractors and mental health professionals. As well, we can also discuss the importance of having a life insurance policy as a small business owner. Let our professionals help you secure an insurance policy for you, your family or your business. Fill out our quick form and one of our experts will get back to you promptly. Prefer to speak to an agent right now? We can do that too. Call us at 1-877-600-5666.