For the last segment of Life Insurance and Who Needs It, I am addressing why small business owners need to consider purchasing a life insurance policy. While this category is a bit more nuanced than the prior three, it is equally important.
If you have a partner, you may use your life insurance policy to payout your partner in order for them to afford to purchase your part of the business or to substitute your monetary contributions. You also don’t want business-related expenses to fall back on your family.
Life insurance gives small business owners options and peace of mind knowing that their company won’t be put in danger of closing. As Karin Price Mueller from Entrepreneur explains, “With the right insurance in place, the surviving business partners will have enough capital to keep the business going while looking for a replacement for the deceased partner, or to buy out the heirs of the deceased partner.” You want to protect the future of your company as well as you business partners, employees, and family. Life insurance helps you do just that.
You also want to find the means to provide your employees with life insurance options. It will improve your employee retention, opens the door for tax deductions, minimizes risk, and helps you protect your investments.
Because each small business is different, keep in mind that there are a variety of options and applications depending on the situation as Aubry Cohen describes in greater detail here. While it may seem daunting or overwhelming, it’s vital to the success of your company. Consult an insurance professional to set you and your business up for success.