What happens to your business if you die?
What happens to your business if you die? If you own a business you may want to ask yourself this question. Owning a business can be one of the most rewarding experiences of your life. But it also includes a lot of responsibilities to your business partners, employees and family. So, what would happen if you died or became disabled? Could your family maintain their income? Would they run the business themselves? Another consideration, what would happen if a key partner or employee died or became disabled? Would your business and/or family be able to weather either of these hardships?
Some people think their family will continue running their business if they die. The fact is, your loved ones may not have the skills or the desire for the job. Your co-owners may not welcome the idea of an unintended partner, either. When adversity strikes, a smart business-continuation plan can help protect business partners and family members. Buy-sell agreements, business overhead insurance, key-person insurance, and disability buy-out insurance are all important policies for business owners to consider. A buy-sell agreement, for example, is between owners to buy out a co-owner’s share of the business in the event of their retirement, disability or death. Typically, buy-sell agreements are funded with life insurance policies. So if a co-owner dies, this allows remaining business owners to buy their company share at a previously agreed-upon amount. This ensures business partners aren’t scrambling to come up with the money to buy out your share. It also means your family will be fairly compensated.
The following is a true story about how a buy-sell agreement funded with life insurance helped this family after tragedy struck. To watch the full story visit https://lifehappens.org/videos/a-dream-lives-on/
Got Life Insurance Questions?
If you have questions about how to use life insurance for your business call Empower Brokerage today. One of our life and financial experts will be happy to help you. They can discuss choosing the best policy, or conduct a policy review to ensure that your current policy is still right for you.
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