Business life insurance is a type of life insurance taken out by a business on the life of a member. Typically, this member will be a majority stakeholder, a co-owner, or an individual without whom the business would stop running.
What Is Business Life Insurance?
An unfortunate byproduct of a shaky economy is that many small business don’t survive past their first year.
Business Estate Planning.
If you pass on, how will your company run? For a lot of employers, the company will continue to run on its own.
Do you know who will inherit your business when you can no longer run it?
Starting a company isn’t an easy task, and you may have unpaid business loans that will need to be paid back.
Do I Really need business Life insurance?
Chances are almost any business – from large corporations to small mom-and-pop stores – has some sort of business life insurance built into its financial plan. While it is necessary for a strong financial foundation, these types of plans aren’t for everyone.
Small to medium sized companies benefit most from implementing these policies, as their owners, shareholders, or founders still play a large role in how they are run. If you are the sole owner/founder of a small company, you most likely run the show, from bookkeeping to event scheduling.
If you were to walk away from your business, it wouldn’t survive without you. You also most likely still have start-up debts to pay off, as well as other incidentals like office rent and inventory. If this describes your business, you will certainly benefit business life insurance.
Applying for Business Life Insurance
When applying for business coverage, you should take steps to document your wishes for your business early on. Do you wish to have your business terminated upon the event of your death? Should it be passed on?
Protect Your Company’s Future
Your family’s financial future is impacted by more than your personal finances. The steps you take to ensure that your business is in good hands can also assure that your family is well-cared for after you pass.