Proper Insurance Can Help Protect a Business—and the Families Who Rely on it
You may have two families—one at work and one at home. Having the right insurance can help protect both.
If you’re a small business owner, entrepreneur, or freelancer, your business depends on you. Having the right insurance can be essential if things take an unexpected turn. You’ve probably considered general liability or other business insurance, but do you have Life and Disability coverage?
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As a business owner, it’s easy to let everyday decisions trump a key strategic question: what will become of your business if something happens to you? How will your family survive without your income? What about your employees? Your partners?
There are several ways you can use Life insurance to protect your small business:
- Individual or Group Life insurance can be used to cover financial responsibilities associated with closing or selling a business if family members do not want to continue the business.
- Key person insurance provides benefits when a key owner or employee dies. This coverage, purchased by the business, provides benefits that can be used to maintain operations until a key person replacement is found or the business is sold.
- A Buy/Sell agreement also addresses the risk of losing a key partner. If your business has more than one owner, the cash benefit allows the other owners to buy out your interest from your surviving family members.
In the event you’re unable to work due to an injury or illness, you’ll need money not only to supplement your income, but also to keep your business running. If you’re self-employed or own a business, there are two types of Disability insurance to consider:
- Individual Disability insurance that protects your personal income if you’re unable to work. It replaces your paycheck and can be used for everyday living expenses.
- Business Overhead protection to help cover overhead expenses like rent, utilities and employee salaries so your business can continue to operate while you’re disabled. Unlike individual disability insurance, which covers a portion of your income, Business Overhead Protection can cover 100% of your expenses. It also provides a residual benefit that could continue to cover some expenses in the event you can only perform part of your job.
Your business is a significant financial and emotional investment. Life and Disability insurance are some of the most important tools you can have to help protect your loved ones, employees, and the business you’ve worked so hard to build.
Contact our Advisors today. They can help you craft the right solutions for your unique situation.