Types of Life Insurance For Small Business Owners

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If you’re a business owner, you would be well aware that the operation of your business is highly dependent on your decisions. While this is a good thing, as long as you’re alive, you need to consider what could happen in your absence. If you don't think either your family or business can manage financially without you, you will need life insurance to give financial protection to your family, business, business partner, and employees. If this is a subject that is entirely new to you, here is a brief guide of different types of life insurance suitable for you. 


1 Individual Life Insurance For Small Business Owners

Individual life insurance is for owners who have business partners. In this insurance policy, in the event of the demise of either of the business partners, the benefits of the policy goes to the surviving owner. It helps the surviving owner continue the business by providing protection from financial shortages and challenges.

Types of Life Insurance For Small Business Owners

2 Key Person Life Insurance

In a key person's life insurance, the business, and not the owner(s)  is made the beneficiary of the policy. In this type of insurance, the business receives funds from the insurance provider when an indispensable employee passes away. In America, one in every five small businesses gets insurance coverage with this type of insurance policy. It helps a business survive by providing funds and buying time for the next owner in line to sort out situations when a decision-maker for the business dies. 


3 Buy-Sell Agreement

A buy-sell agreement is a contract between two business owners in which both agree to buy out the entire share of either of the owners if either one passes away. This is usually set up by making each other the beneficiary of individual life insurance by both the owners. For instance, if the buy-sell agreement states that the entire value of half of the business is worth 1 million dollars, the individual life insurance would be set for both owners in a way that provides 1 million dollars to the surviving beneficiary. 


Conclusion

Life insurance for small businesses can provide financial support when it’s in hot water leading to the demise of an owner. This is great financial protection much needed by the surviving owner or the next in line from the aggrieved family to keep the business afloat. To buy the Best Life Insurance For Small Business Owners, visit Jessie Herman Insurance. Buy life insurance and keep your family, business, and business partner safe from future financial problems.
Location: Cumming, GA, USA

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