Small Business Owner? Here’s Why You Need Life Cover
For many small business owners, buying life insurance for their business and team members isn’t at the top of their priority list. In fact, smaller businesses view this coverage as a luxury addition that they will one day get when finances allow. But what many fail to realize is that life insurance can be beneficial to both business and policyholder. Here are just a few reasons why small business owners need to secure life insurance in Millerton, NY.
As a small business owner, it’s likely that your family depend on your business’ income to pay the bills and plan for the future. The income may even be used to pay back loans that were needed when the business was first getting started. Your family members may not be properly prepared to take over the business if you were to die suddenly. Also, they may not be able to sell it easily. In turn, this could leave them without income and they could be put into a position where they might lose their home, if that’s collateral for a business loan.
If you have business partners, they may be able to buy out your share if your family cannot step into your role. In this case, your family will be left without means of an income and no backup plan. Not only does this put them in an incredibly difficult position, but can be an incredibly stressful and upsetting time.
Fortunately, life insurance can step in to help. A personal life insurance policy would help your family pay off the business debt as well as cover living expenses after your death. If your business has two or more owners, you can combine life insurance policies on each partner with a buy-sell agreement. This is an agreement that states that upon the death of a partner, the living partners can buy out the surviving family’s share at a previously agreed upon price. Fear not, the life insurance will pay for the buyout.
Small business owners can benefit greatly from life insurance cover. The team at Kneller Agency is here to help with all of your life insurance needs. Contact us today! We serve Chatham, Copake, Valatie, Tilden Place, and neighboring cities of New York.
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