It has everything to do with it is the answer. The business owner is the one who dreamed of possibilities, took risks, worked long hours, made things happen, built and led their team to success. What if the business owner is not in the picture anymore?
How does the family’s income stream continue? How does the family’s plan to one day retire by putting some profits away now get fulfilled? What happens to a spouse who now inherits a business that they simply are not suited to run or perhaps cannot run because of other demands like raising a family or a medical problem?
We often look to protect our businesses from losses arising out of damage to the building or concerns of liability and loss of income related to such matters, falling short in protecting the most important part of the business – that is the very life of the business owner.
Money to provide a spouse with options or an individual who is part of the succession plan is so important.
Suppose that you have a business which is a partnership and each of the partners bring something unique to the business, one has the gift of creativity and sales, another brings finances and another has the gift of administration. What happens when one partner dies?
Well, the remaining partners now have a new partner – the spouse of the deceased partner who may not be interested in being a part of the team and simply wants to sell their portion. Where does this money come from? You may be able to get a loan, but what if that is not an option?
Life insurance delivers tax free dollars exactly when it is needed, most for pennies on the dollar. Every business owner should have a plan – a strategy. Do you?
Never make a financial decision without talking to an expert, contact a licensed agent to find out how you can protect your business and the ones you love.
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