Car dealer Antti Herajärvi answers the phone at 8 a.m. He places an earphone in his ear and says he will leave for work from his cottage. Now he has a little time for other things.
The entrepreneur from Rovaniemi is busy, as the automotive industry is changing fast. Herajärvi Car Center has been operating in Finland for over 20 years. The company changed its name to Bilmax a couple of years ago. At the same time, it expanded its business across the border. Bilmax is visible in Lapland, the Helsinki Metropolitan Area, and Sweden.
Why did an experienced entrepreneur became interested in life insurance in the first place?
– This is a capital intensive industry. In case the worst happens, I want to make sure that my family and relatives do not have to bear any economic risk.
He also has other reasons for taking out life insurance.
– When an entrepreneur passes away, the tax authorities also take their share. Family and relatives can run into problems due to inheritance tax. Entrepreneurs should realise that they can influence many things with life insurance. Among other things, it allows them to avoid a situation where their family and relatives have to liquidate their property below its real value in order to be able to pay inheritance tax.
Herajärvi says that the expansion of business has also increased responsibilities. In practice, this means that there is more loan capital to pay back, for example. This makes it more important than ever to ensure that life is secured.
– Of course life insurance is an expense item, though it is not as expensive as people think. I worked as an entrepreneur for 10–15 years before I recognised my responsibility. I’ve noticed that life insurance makes things easier and brings security.