THURSDAY, DECEMBER 15, 2011
 As a business owner, there are many people depending on you. Your family relies on you to provide for them and help meet all the financial obligations you share; your employees rely on you to give them work and pay them for their time; your business partners and shareholders need you to keep the business running and profitable; and your clients and customers rely on you to continue to provide an excellent service or product.
If you should pass away without securing you obligations with life insurance coverage, all of the people who depend on you could be left flailing. Instead of setting your business, employees and family up for financial stress after you’re gone, consider some of the following life insurance options.
- Life insurance with a buy-sell agreement: If you have a business partner (or partners), and your family isn’t interested in taking your business shares, then a buy-sell agreement funded with life insurance proceeds would give your partner the money they need to pay your family for your shares.
- Key person insurance: Your business relies on your expertise and reputation in order to remain fully functional. If you pass away while the business is in operation then there could be a loss of income until a suitable replacement is found and hired. Also, the finding and hiring of a suitable replacement could take more time and money than your business partner expects. A key person insurance policy gives your business the money it needs to replace you and keep the business running in the interim.
- Personal life insurance: Outside of the funds received from the buy-sell agreement, your family may need additional funds to help them satisfy personal expenses and obligations such as the mortgage balance, college tuition and credit card debt.
Next, you need to decide what type of life insurance policy is best suited to your needs:
- Permanent: A whole, or permanent, policy is one that pays a benefit to your beneficiaries no matter when your death occurs, as long as the premium is paid on time and the policy is in-force. In addition, it accrues cash values that can be used for loans.
- Term: Term insurance policies pay death benefits for a limited period of time (the term of the contract) and only as long as premium payments are made on time and the policy remains in-force. Term policies do not accrue cash values.
Want to learn more about how a life insurance policy can be designed to serve your family and your business? Consider adding this policy to your Colorado Business Insurance and call an agent at Premier Group Insurance to discuss all the options available.
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