Besides taking care of your family, life insurance can also protect
your business. What would happen to your business if you, one of your
fellow owners, or perhaps a key employee, died tomorrow? Life insurance
can help in a number of ways. For instance, a life insurance policy can
be structured to fund a "buy-sell" agreement. This would ensure that
the remaining business owners have the funds to buy the company
interests of a deceased owner at a previously agreed upon price. That
way, the owners get the business and the family gets the money. To
protect a business in case of the death of a key employee, "key person
insurance," payable to the company, provides the owners with the
financial flexibility needed to either hire a replacement or work out
an alternative arrangement. |
Life Insurance > 1. Why life insurance? >