What’s in It for You?
If you already have your own family, you know that they are depending on your monthly income for their daily needs. You may also have loans to pay where you used your assets to gain capital for your small business. However, if something happens to you, none of your family members can magically take over the business and handle things as good as you. This might cause the business to go under and may put your family at a financial risk.
Life is unpredictable and there is no way of knowing what will happen next. If your family finds themselves in a situation where they are forced to sell the business, they might settle for an amount that is lower than what you’ve put out. According to experts, businesses are not worth a lot if the owner is not around anymore.
Your business partners may also be unable to fill in your role and they might not have enough savings to buy the company from your family. This may lead to your business partners deciding to sell the company off at a lower price. If they decide to continue, it can put the business at risk and your employees are also going to be severely affected.
What to Do?
In all the scenarios mentioned above, life insurance will greatly be of help to ensure that your small business and your family are protected. This involves different types of insurance policies. Having personal life insurance can help your family pay off your loans and will secure their daily expenses when you’re gone. When this happens, they have more time to think about what they want to do with your business.
For your business partners, a combined life insurance for every individual with an agreement to buy-sell is a must. In this agreement, it will state that in case of a death of one partner, all the other owners are allowed to buy his shares at a certain price that you all agreed upon. The buyout will be paid for by the life insurance.
You should also consider a key person insurance policy to protect your business in case of a death of a very important staff member. When this happens, the insurance will pay the owners of the small business.
No matter what kind of business you run, you always have to think about you, your family and your business’ protection. At Western Pacific Insurance, we take pride in making sure our clients are well protected at prices they can afford. To learn more about how we can help you please contact our agency at (702) 932-3105 or Click Here to request a free quote.