Business Life Insurance a Smart Investment for Business Owners

Category: Business Insurance

Business owners must make smart investments to protect their livelihood, just like individuals. Our financial services team offers a variety of investment solutions for business owners, from comprehensive employee benefits programs that help protect your employees to life and disability insurance options that help protect your family, your partners and the business you have built if something happens to you, a fellow owner or even a key employee.

Why take chances with your business? It not only supports you and your family, but also is of vital importance to your partners (if you have them) and every one of your employees. What would happen to the business and those it supports if something were to happen to you? Business life insurance is one solution that can help you be prepared for the worst.

Business life insurance is a life insurance policy for a sole proprietor of a business or on the life of a member of a partnership or an officer or stockholder of a corporation. Proceeds from business life insurance can be used to finance the purchase of the business by surviving owners upon the insured person’s death.

Business life insurance can also be purchased for a key employee in order to protect a business from losses if that key employee dies.

There are several forms of business life insurance, including the following.

  • Business owner life insurance provides protection for your family in the event of your death. The proceeds from a business owner life insurance policy will help your family with the costs, expenses or liabilities related to your business.
  • Buy-sell agreements ensure that if a co-owner of a business dies, the remaining partners will have the funds to purchase the portion of the business held by the deceased partner at a previously agreed upon price. The buyout money goes directly to the deceased owner’s family, or whoever inherits the shares of the business. Buy-sell agreements are valuable to partnerships because they eliminate uncertainty and protect the interests of all parties. These agreements will identify future buyers, predetermine the sale price of the business through an agreed upon valuation method, and provide the cash to ensure that the business is sold at a fair price.
  • Key employee insurance protects your business from the consequences of the death of a key employee. If your company’s success relies heavily on the contributions of specific individuals, you might want to consider key employee insurance. Proceeds from these policies can be used to offset any loss of sales, knowledge or expertise that your business would experience if a key person dies.

Do you own a business? Have you considered business life insurance or any other important investment solutions for your business? If you have partners, do you have a buy-sell agreement in place? What would happen if you unexpectedly lost a key employee? Our experienced professionals can help business owners of all sizes assess their investment needs and ensure that your business is well-positioned to recover even in the worst of times. Call us today to learn more.

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