Should Business Owners Purchase Life Insurance?

9/27/2018

Should business owners purchase life insurance“Should business owners purchase life insurance?” 

This is a valid question that was posed recently by a local business owner.  Almost 100% of the time, the answer is yes. 

Life insurance is a tool that can be used in numerous ways for business owners in the event of an untimely death.  First, most business owners take out loans, backed by personal assets in order to start a business or to help with the daily running of the business.  How would life insurance help in this scenario?

  1. The proceeds from the insurance can be used to pay off the loans.  This would help keep the family assets intact and create peace of mind. 
  2. The proceeds could help with the day to day operations of the business and help hire someone to run the business, should the surviving family members or business partners want to continue the business. 
  3. The proceeds can also help if the business needs to be sold.  Depending on the business financials and the market for the business, the proceeds can help make the business more robust rather than selling quickly or for a discounted amount. 
  4. If the life insurance is a permanent cash value policy, most banks will allow you to use it as collateral to help your business. 
  5. Cash values can also be used.

Life insurance is one most versatile tools a business owner can have and use to help with all facets of the business.  It is important for all business owners to review their options or go over their current policies with a qualified Life Insurance Specialist. 

This article was written by:

Bryce Bilyeu

Bryce Bilyeu - Troxell InsuranceBryce is TROXELL's Life Insurance Specialist located in the Springfield office.   Bryce takes the time to get to know client’s needs and expectations when it comes to planning for the future.  Together our goal is to help clients find a life insurance plan that fits their lifestyle.  Bryce is a proud father of 3 and coaches youth sports in his free time.  Contact Bryce at 217-321-3199 or bbilyeu@troxellins.com

Comments

 
 

No comments have been posted.