While most people understand the need for a spouse to receive funds in the event of the death of the other spouse, most do not realize a business can suffer if an owner or key employee dies prematurely. It is possible for a business to purchase business life coverage for this situation.
In addition, many businesses start small and sometimes grow to the point where it would be difficult to buy a partner out in the event of his/her death. In this case, a buy sell agreement is used to detail what should be done in this event, and the needed cash for the buyout is provided with life insurance. There are many ways to design a buy sell agreement. Call us to discuss the options and to ensure that the business you have built can survive the death of a key person or partner.
“Business Life insurance (Key man) provides liquid cash to pay off heirs in the event of premature death of an owner or key person in the firm.”