How life insurance can help business owners plan for the unexpected
Life insurance is often considered a very personal matter, but it matters in the business arena too. For business owners, particularly those working with partners who also have vested interest in the company, life insurance and other related covers like key person insurance and debt protection are crucial.
Comprehensive and relevant life insurance will also allow you to protect your family financially should something happen to you that will affect the running of your business. Take a look at the following points to discover what the right insurance policies can do for you as a business owner.
Your business partner will be protected
Business partners will often take out life insurance policies on each other. Often, the money in conjunction with a written agreement will ensure that the surviving partner can buy out the other’s shares and keep going. Being in business together makes people financially interdependent—it’s a good idea to carefully plan for the possibility of one partner dying unexpectedly.
A robust policy is a safeguard for your business partner and any employees relying on your company for their income. It will protect the livelihood of those who have helped you build your business.
Your family will get by
If your family depends on the income generated from your business, you will want it to continue running effectively in any circumstance. Having policies in place to facilitate this will ensure they can be taken care of—and if they sell your share in the business, they can get the best price possible.
Debt protection cover is also very important in protecting your family and loved ones in the case of your death, incapacity, or disablement. It ensures that debt can be repaid, removing personal liability from you and your estate.
You can guard against the loss of key people
Key person insurance is a helpful product that makes sure your business can run when particular people are out of action. Most companies—particularly small businesses—have those individuals who are crucial to operations. Would it be bad news for the future of your company if you, a partner, or an experienced employee were to suddenly become unable to perform their responsibilities? If the answer to that is yes, you may need to consider key person insurance.
Working with an insurance broker is the best and easiest way to secure the right insurance for your specific circumstances and needs. Working independently from insurance companies, they are the experts in finding policies that fit an individual, saving clients time and often cutting overall costs by helping them to determine which insurances are necessary and most beneficial through careful risk analysis.