For anyone, having a life insurance policy is in their best interest. But for small business owners, having a policy is even more important to ensure that your family and dependents are left in a secure place in the chance you pass away unexpectedly. Read on to learn why this is so important for small business owners:
As the business owner what will happen to your company upon your death? Will your heirs need to sell the business in order to pay estate taxes and liabilities? Do all of your heirs coperate enough to take over your business or handle the transition properly? Having life insurance can help ensure that at your death the transition to a new owner will happen orderly and economically.
Every business has key employees that help it operate smoothly. But in a small business, the roles of key employees are exasperated and they can sometimes truly be unreplaceable. What happens if one of these employees unexpectedly passes away? Could your business still function as well and be as profitable? Life insurance may be able to ensure that you have cash when you leave it.
One of the most important things that potential employees look for in a company is quality benefits, which includes life insurance. Many businesses don’t have a good benefit program in place and therefore have trouble attracting and retaining high quality employees. Investing in a life insurance policy for your company can indirectly help your business by helping your recruit the best employees who are looking to stay somewhere long term.
It can replace your income
If you support anyone financially, especially if you’re a small business owner, then it’s imperative that you have life insurance. If you die unexpectedly then your dependents can use the life insurance from your policy to pay for anything from funeral costs, to a college education to day-to-day expenses.
It can protect your heirs from estate taxes
If you die unexpectedly without life insurance and don’t have a lot of money saved up, your family might have to sell your business in order to pay the estate taxes. Having a life insurance policy can help them pay the estate taxes while keeping the business intact.
If you are interested in taking out a life insurance policy contact us at Tom Jones Financial.