Small Business Owner Risk
If you have a small business that is thriving, count yourself as one of the fortunate and successful. According to the Small Business Administration, only about half of small businesses survive five years, and one-third makes it to ten years. If you've beat the odds, chances are you want your hard work and dedication to carry on after you're gone. One of the ways that you can ensure the longevity of your business and your investment is through a life insurance policy.
Own a Small Business? Get Life Insurance!
Most of us understand that a life insurance policy can provide financial security for loved ones when we're no longer around. The cash benefit from a policy can replace lost income, pay burial expenses, and provide for the upbringing and education of children. Yet, small business owners get additional benefits from having a life insurance policy in place.
If a partner or a co-owner of a business were to die, that business could deteriorate in a matter of weeks or months. With the correct life insurance policy in place, business partners and family members will be able to keep the business operating while looking for a replacement for that key partner. Family members may be ill-equipped to take over an unfamiliar business and, without a life insurance policy to infuse capital, could be forced to sell the business for less than it is worth. Funds from a life insurance policy can also be used to buy out the survivors of a deceased partner.
Best Life Insurance For Small Business Owners
Small business owners need life insurance to avoid costly business interruptions that can be caused by the death of key players in the organization. Depending on the particular type of business and the circumstances, there are different choices. For example, a personal term life insurance policy can help family members pay off business debt and cover living expenses while they decide what to do with the business. If the firm has multiple partners, the best life insurance policy might have a buy-sell agreement that pays for the buyout of the deceased partner's share of the business. There is also key person life insurance that protects a company from the death of an important employee.
Owning a small business in this country today is an incredible accomplishment. Small business owners have unique needs, including protecting their investment with the best life insurance policy. Contact us with any questions or request a quote now.