If you own your own business, you likely have a number of employees who depend on you for income, health insurance, retirement planning, and more. But what happens if you pass away while you are still working? Small business life insurance can help ensure the continuation of your business when you are gone, and help make this time of transition run more smoothly.
If you have a business partner, you may want to consider purchasing a buy/sell agreement. In this arrangement, you and your business partner will own policies covering each other’s lives. If the first business partner passes away, the other receives a death benefit that can be used to buy the remaining half of the business. This results in a cash payment to the deceased’s family, as well as security for your business to continue operating.
As a business owner, you play an essential role in your business. Key person life insurance is a death benefit that can help your business cover financial losses as a result of you passing away. In the event of your death, the death benefit can be used to go towards looking for your replacement, making up any lost costs, or if the company shuts down, paying off any debts or severance packages.
Talk to your life insurance professional about how to protect your company with small business life insurance.