Today's Small Business Owners work morning, noon, and night building their businesses - often putting every ounce of energy and much of the income back into the business. Many do not have access to benefits that traditional employees do.
|
 |
 |
Small Business Owners understand that their businesses could not stand on their own without them. Without them or key employees, that same business that is the life blood for their families, employees and their employees' families could be in peril.
|
With money and time at an extreme premium, sometimes an inexpensive term life insurance policy large enough to replace the owner's income is needed to protect the owner's family.
*Total life insurance in force should be based on the results of a comprehensive family needs analysis that will include loss of income if the insured dies.
|
 |
 |
As the business grows, life insurance can be a major component in any plan that makes sure the business continues in the case of a loss of an owner, partner or key employee. Key forms of business uses for life insurance are ...
|
Business Loan Protection:
A Life Insurance Policy written for the sole purpose of providing funds to pay off any business loans in the case of a business owner's death.
|
 |
 |
Buy-Sell Insurance:
An agreement among owners in a business which states that under certain conditions, (such as the disability or death of a partner) that departing partner (or in case of death, his heirs) are legally obligated to sell their interest to the remaining owners.
The remaining owners are legally obligated to buy at a price fixed in the Buy-Sell agreement. The funding vehicles are disability insurance, life insurance, or both.
The Need for Life Insurance – Introduction to Buy-Sell Planning
|
Stock Purchase Agreement:
A formal buy-sell agreement whereby each stockholder is bound by the agreement to purchase the shares of a deceased stockholder and the heirs are obligated to sell. This agreement is usually funded with life insurance. More...
|
 |
 |
Stock Redemption Agreement:
A formal buy-sell agreement whereby the corporation is bound by the agreement to purchase the shares of a deceased stockholder and the heirs are obliged to sell. This agreement is usually funded with life insurance. More... |
Key Employee Life Insurance:
Insurance on the life of a key employee whose death would cause the employer financial loss. The policy is owned and payable to the employer.
Key Employee Life Insurance 101 |
 |
