Every new or growing business in need of capital to move things along has to choose a source, a bank, an investor or a partner and in all three of those scenarios any substantial investment in your new enterprise is going to require business life insurance as collateral.
Today I’d like to go over a few of the stumbling blocks in business life and disability income insurance and how to overcome those if they occur. For any of us who have been through the drill of getting all of the requirements together for a bank business loan or an SBA loan, the experience can be all consuming for a while and as the closing date draws near any bump in the road is, at best, an unwanted distraction. At worst, something like a last minute decline on your application for business life insurance can derail the whole project, often at a large cost. Interest rates that are locked in based on a closing deadline or investors who are only patient up to a point, can change if you can’t meet your closing requirements when they are due.
Here at Hinerman Group we have access to rapid, last minute business life insurance that can literally, from the first call to me, be in force within 3-5 days. We will work closely with you and your bank to make sure you have a life insurance policy and they have the collateral assignment they need, when they want it. Sometimes things don’t work out quite like we planned, especially with something that has as many moving parts as a business loan or acquisition, but if the problem arises with a business life insurance requirement, we can fix it quickly.
One of the other stumbling blocks with business life and disability income insurance happens when traditional insurance companies decide they aren’t interested in participating in your new venture, especially right now the legal commercial marijuana growing and retail business. Right now there are no US life insurance companies that are offering business life or disability insurance to the executives, CEO’s or business partners in these state legalized recreational and medical cannabis businesses. I have talked to several US underwriters about this stance and their reasoning, sometimes including the “volatility and dangerous nature” of the business just doesn’t hold water when international underwriters are more than willing to address the risk with reasonably priced and highly rated products and services.
Bottom line. When you consider that business life insurance can be obtained in just days and businesses that are shunned by US life insurance companies can get coverage, guaranteed, it makes a business person wonder why they would go with US companies to start with. You’re going to have your hands full getting all the requirements ready for your new or expanding business venture. Let us take a load off and make it all just a little easier. If you have questions or want to discuss options, call or email me directly. My name is Ed Hinerman. Let’s talk.