Why Business Owners Need Life Insurance


Last posted at locallifeagents.com

Have you thought about business life insurance?  You’re working hard to get your business to the top.  Business owners put in countless hours, nights, and weekends.  You’re there to make things happen. And make sure they stay on track, and grow.  What if suddenly you couldn’t be there?  What if you can’t be there?

Without you around, how would your business pay the bills, make payroll and protect against a down turn?  What is going to happen to your business if you were, suddenly and unexpectedly, to die or become disabled?  Or what about when you finally decide to retire or reap the harvest of all your work and sacrifice?  What is your business going to do without your guidance and experience?  Do you have a life insurance plan in place?

Business Life Planning – Be there when that time comes, by planning now.  Life Insurance will make sure your family is taken care of, and that they get properly compensated for the business you’ve built.  It can also ensure the reputation you’ve developed over the years remains, and continues to maintain the business’s future reputation, long after you’re gone.

Types of Coverage

Buy Sell Agreement

Anytime you have more than one owner of a company, it’s imperative to have a Buy Sell Agreement in place. A Buy Sell Agreement will make sure your family gets properly compensated. The best way to fund your Buy Sell Agreement is with life and disability insurance.

Key Man

Key Employees, Your Right Hand, the people that make your business a ‘business’ – Those you rely on day-to-day to make the business run when you’re out of the office.  Ensure this status with Key Man Life Insurance. It’s also a great way to retain these precious people, by giving your ‘best and brightest’ an incentive to stay with you and your company.

Business Continuation

When a small business owner dies, Business Continuation Life Insurance makes sure your heirs have the money to pay estate taxes and any business liabilities left behind. Heirs often find themselves trapped in an unsellable business due to market conditions or lack of buyers.

Cash is what your heirs will need. Life Insurance will give them that. Plus, with Life Insurance, it alleviates the need to sell the the business for less than what it’s worth because of time-crunch. It will give the time to find just the right buyer by giving cash for immediate expenses.

Corporate Life Insurance (COLI/BOLI)

What are cost effective ways for banks and corporations to help drive down the rising cost of employee benefits? Bank Owned Life Insurance (BOLI) and Corporate Owned Life Insurance (COLI). Corporate Life Insurance benefits the employer and the employee. It’s an advantage for both parties.

Bank and Corporate Owned Life Insurance (BOLI/COLI) are structured so the corporation pays the premiums, owns the cash value, and is also a beneficiary of the policy. Your employees get benefit coverage, you get a reduction in cost.

Executive Benefits

Bonus Plans – Reward your chosen employees with an Executive Bonus Plan. We can design your executive bonus plans to fit your businesses needs. We make it available, and easy. How? Life insurance companies offer preferred group underwriting rates, easy implementation and sold administration support.

Split Dollar Arrangements – Split dollar arrangements offer your employees access to life insurance at a lower cost to them. The premiums are split between the business and the employee. This creates a loyalty incentive for your employees, and as a business owner, we all know how valuable that can be! 




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