Business Life Insurance
If you are a business owner, Business life insurance is critical to protect your investment.
You've worked hard to establish your business and achieve success within it.
But if you were to die unexpectedly - what would happen to the business?
Would it survive?
Insurance can help to keep your business operational even if you die.
This form of life insurance pays a death benefit at the time of the business owner's death, to the business. This benefits you in several ways:
- It allows the business to continue even after your death.
- It allows the business to have the necessary funds to pay estate taxes and other liabilities, keeping the business free from these excessive financial burdens.
- It allows your heirs to make decisions regarding the business, such as keeping it open and operational, that they may not have been able to make if there were extreme burdens on the business after your death.
Business owners should not overlook the potential for the business to go under without some type of financial support. Life insurance can help in that way.
Key Employee Life Insurance
Business life insurance may also be an option on the key employees within a business.
For example, if a business has a president that is highly valuable and integral to the day-to-day functioning of the business, and that president dies, the business may go under.
With the help of a policy on that individual, the business has at least some funds available to them from the death benefit.
This may keep the business operational until another key player can take over that vital employee's position.
Life Insurance for Employees
Some businesses like to offer their key employees large life insurance policies as a benefit for working at the business.
The employee names the beneficiary of the policy, and that is rarely the business itself.
Group life insurance is an example of this type of employee related life insurance policy.
Within the business environment, there are numerous needs for quality life insurance products.
The business owner needs it to keep his or her business afloat while the business owner may also need to ensure that key employees have protection. Many businesses use business life insurance as an incentive to get those high caliber employees they otherwise could not lure into their company.
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