If you’re a small business owner, there are probably a lot of people depending on your continued success – from your family to your employees, partners, investors and creditors. The best way to protect everyone’s interests, including your own, is to keep your life insurance up to speed with your business situation.
Anytime you make a change to your business, you should review your life insurance and assess your amount of coverage to make sure it’s adequate to meet any obligations in the event of your untimely death.
Some of the life-changing events that can affect your life insurance include:
Purchasing a major piece of equipment or property
You need to up your life insurance coverage so your survivors have the funds available to pay off your loan, lease, mortgage or capital improvement debts.
Hiring or training employees to take on vital roles in your business operations
Look into key person insurance (also called key man insurance or key executive insurance). These special life insurance policies will protect your business if an important member of your team or someone who contributes significantly to your profits or stability dies. The policy will provide the funds you’ll need to hire a replacement.
Expanding into a new area of business or adding a new product line
Protect your vision and investment in the future with adequate life insurance to make sure your pet projects survive and thrive.
Taking on new investors
Your life insurance policy can assure that your backers aren’t left holding the bag.
Any changes that impact the value of your business
As your business has prospered (or fallen on hard times), any buy-sell agreement you have with your partner or partners is affected. If you want your heirs to carry on the business, be sure they have the money to buy out a surviving co-owner when he or she dies, or retires, becomes disabled or simply wants out.
If you don’t currently have adequate life insurance to cover your business needs, you can get e life insurance quotes easily online through einsurance.com