Imagine if something were to happen to your business partner or a key executive in your company. One moment everything is running just fine. The next moment, disaster. An illness, accident, or unexpected death can put your entire business in a state of turmoil and bring normal operations to a standstill. Critical decisions that used to be easy now can’t be made at all. You find yourself dealing not with a lifelong business partner and friend, but perhaps with the spouse or family member who inherited the estate and has no experience whatsoever.
A comprehensive insurance program strengthens the financial security of your operation from the time you start your business to the day you retire. Insurance can safeguard your business in a variety of ways, whether you need to secure a loan or protect your company if you lose the services of a key person. In addition, insurance solutions can provide a tax-sheltered environment for corporate investments, help you attract quality staff, help fund your retirement and even maximize the value of your estate.
Life Insurance for you
How would your family and business associates managed if you were suddenly gone? Making sure you have enough insurance to cover the needs of your business is critical to peace of mind for everyone involved. Ask us about your options.
Insuring your key people
Most businesses have one or more key people who are critical to the company’s success. The owner, for example. Or a top executive such as a CEO, COO, vice president, sales manager or even a top sales person. Losing their services can mean losing revenue; perhaps even losing the business. You can insure key people with any combination of Life, Disability and Critical Illness insurance. This way, in the event of their death or inability to work, the company has funds in place to remain financially sound until a replacement is found.
Protecting your business against the loss of partner
If your business is a partnership, what would happen if one of the owners passed away or became unable to work because of sickness or disability? Without insurance, that owner’s estate — typically a spouse — will take over their share of the business. A buy-sell agreement sets out clear conditions by which active owners can purchase a departing owner’s business interest. The agreement can be funded with Life, Disability and Critical Illness insurance which provide a cost-effective way to receive tax-free funds exactly when you need them. Your Murrick specialist will work with you and other professionals, such as a lawyer, to put this vital strategy in place for your business.
If an owner suffers an illness or injury and finds himself or herself unable to work, Business Overhead Protection, a type of Disability insurance, can cover overhead expenses such as wages and rent until that person returns to work. The monthly benefit provides financial assistance which enables the business to remain operational. This way, the disabled owner can focus on their recovery instead of trying to help save the business.
Insuring business loans
To protect a business loan, creditors typically require life insurance on the business owner as a personal guarantee. But even when not required, you may want to protect loans and debts with life insurance to safeguard your business and heirs. Would you really want your personal life insurance coverage being used to pay down your business debt? It can happen, even if your business is incorporated. Using life insurance to protect loans and debts is a cost effective way to provide peace of mind.
Disability Insurance for yourself
If something were to happen that caused you to be unable to work for an extended period of time, how would you handle your finances? Disability Insurance provides valuable financial support in the event of an accident or extended illness that takes you out of commission from your normal duties.
Contact Murrick Financial Planning today to learn more about Key Person Insurance to protect your business.