Does Your Business Have a Life?

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 (one of 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.

This post is somewhat dated. Life insurance underwriting is changing and evolving continually. For more updated information check out some of the key word links. If you have a specific question or topic you need information for do a search. If you don’t find the answers you need contact me and we’ll make sure you get the information that is important to you.