Ed Hinerman On Life Insurance

Does your business have a life?

June 14th, 2007

Most small businesses, which provide the majority of employment, kind of fly by the seat of their pants when it comes to the area of life insurance and a business continuation plan. Just some food for thought. In the US today, you are more likely than not to either own a small business or be employed by a small business.

Whichever category you fit in to, there is a critical question that needs to be addressed. It affects your family. What if the owner, or a partner (oneof the owners) in a small business dies? Obviously, in the absence of adequate life insurance, whoever passes away will leave behind a family with some very hard choices.

Does the family sell the business? Truth is most small businesses are worth what the company earns while the owner is alive. Does the family try to continue the business? The truth is that generally family members aren’t interested in or capable of running the business. What usually happens in the absence of adequate life insurance is the employees are laid off and the physical business is sold for whatever it can bring.

Business life insurance can take the burden off the family, off the employees and off the business.

If it’s a partnership, a buy/sell agreement whereby both partners have life insurance, guarantees a fair price to the family of the deceased partner. If it is a corporation or sole proprietorship, a life insurance policy can allow the family to pass the business on to an employee or employees.

If you own a business or work for a small business, have a discussion with an independent life insurance agent today about what would really happen if you didn’t come to work tomorrow due to your death. It is a sobering thought when you consider the impact on the lives of your family, and your employees and their families. The cost is minimal in reality and almost invisible in proportion to the potential damage.

Related Posts

• Women In Business and Life Insurance
• The Role Of Life Insurance For Women In Business!
• What Happens To Your Business The Day After You Die?
• Mind your own business!!
• Who will own your business if your partner dies?

Entry Filed under: Independent agent, business life insurance, buy/sell life insurance, insurance, life insurance