Life Insurance: What to Consider as a Business Owner
Your life insurance can help to sustain your business.
As a business owner, on a personal level, you may know that your company could be faced with a serious situation if anything happened to you. Life insurance, not only an important component in personal finances, plays a key role in the financial stability of a business. This coverage can help keep a business going should the owner die, as well as preventing a financial hardship for the owner’s family.
Deciding which kind of policy is best for you depends on your needs. Here’s what to consider.
First, consider your immediate family. Life insurance helps to protect younger families from loss of income or to maintain a certain level of lifestyle in the event of a death. Older couples may use insurance as a way to transfer wealth or a legacy to a younger generation.
Similarly, business owners need insurance for income replacement and to protect the company’s livelihood. A business can deteriorate quickly if a partner, owner or key employee passes suddenly. Fortunately, life insurance can help the surviving business partners to maintain capital to keep the business going while looking for a replacement.
Just like Brigette experienced, change can happen quickly. Brigette was 27 and a new mother when her husband was suddenly killed in a car accident. Unfortunately, she had to borrow money from her parents to pay for Matt’s funeral since he had no life insurance. But, just six months later, she found Anthony. He was supportive and caring towards Brigette, and then soon married and opened their own electrical business. With the business and three children to support, the couple bought life insurance policies.
A year later, Anthony found a bump on his chin. Even though he dismissed it to begin with, he later found that it was melanoma, a serious cancer. Still wanting to provide for his family, Anthony invoked a provision in one of his life insurance policies that allowed him to access a portion of the death benefit, due to his terminal diagnosis.
The remaining money from Anthony’s policies helped Brigette pay off medical bills and meet her household expenses. It also kept the business afloat. She could make payroll and pay vendors while she and her foreman reassured clients that the business would continue. “Without the money, I would have had to close,” she says.
Are you ready to secure the right insurance for your family and business? The professional team at Falsken & Associates Insurance Agency serves Thousand Oaks and surrounding areas in California with reliable life insurance coverage. Contact us to get started.