According to an old expression, hard times reveal true friends. In this time of hardship, life insurers stand with America’s small business – true friends.
America’s small businesses are getting a lot of attention right now and deservedly so.
They generate nearly half of the nation’s economic activity and employ nearly half of the U.S. workforce. While big companies typically have the financial resources to handle initial hits to the bottom line, it’s not the same for small businesses usually. The lines for them between profitability and despair are slimmer.
Congress prioritized aid to this vital sector in the CARES Act passed in March and may do so again soon. A new program designed to protect the paychecks of small business employees provides up to $10 million in aid via loans through the U.S. Small Business Administration, among other things.
America’s life insurers also strongly support small businesses. The long-term success of America’s small businesses is no small matter, since they’re a major market for the life insurance industry.
Small businesses and their employees trust life insurers with their retirement plans – about 25 percent turn to life insurers to support their 401(k)s and IRAs and many turn to annuities in retirement to secure guaranteed lifetime income. Nearly a third of small businesses rely on life insurers for short-term disability income insurance. And nearly one-third of small business owners have life insurance with cash values that can help with company liquidity needs in these trying times.
The life insurance industry-small business partnership is a force multiplier – fueling the nation’s economic engine and providing jobs, financial safety and security to millions.
The life insurance industry and the entire country stands with the workers and owners of America’s small businesses.