Upon the business owner’s death, the bereaved family can use the owner’s life insurance in order to come up with cash. Thus, it should prevent the liquidation of the assets of the business. With a liquidation sale, the result is a family that should receive far less than the actual market value of the business assets. Thus, life insurance can serve as the money that can get rid of the urgent need for liquidation.
Key Man Coverage
Many businesses depend largely on the expertise or performance of one person. In that case, the entity needs life insurance in order to keep the business afloat or to buy some time before total asset liquidation in case the key individual dies.
Start-up businesses that are planning to expand usually need to borrow a large amount of money. In that case, life insurance can serve as collateral in case the owner dies. The business owner should only list the financial institution as the beneficiary of the policy. That means the institution will receive the loan and proceeds in case the policy owner dies.
A small-business owner can always buy a policy that accumulates cash in order to provide funds for the purpose of insurance protection. In that case, the owner can borrow from the policy’s cash value when trying to take care of an unexpected financial emergency or to finance an expansion project.
A business owner should always recruit talented workers if he wants the business to remain competitive. In that case, you can offer group life insurance to potential employees. If you pay a part of the premium for your employee, then that should encourage him to either join your company or stay there for good.
Some Final Words
Life insurance does not only serve you in your retirement or your death. It can also serve as a buffer for any future business challenges. Get your hands on a life insurance policy now, and enjoy its numerous amazing benefits.
At Roper Insurance Services, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (828) 697-6709. Get your free quote today by CLICKING HERE.