For business owners, the right planning and policies can ensure a future of profitability and success for the business you’ve worked hard to build.
A Life Insurance Policy That’s Right For Your Business
Business insurance comes in many forms, from coverage for the person you rely on the most to a solid plan for who takes ownership of your business after you’re gone. Here are a few of the ways the insurance experts at Aegis can help you plan for the future of your business:
Key Person Insurance
Every business has that one person that it just couldn’t do without. Key person coverage allows you to protect the one person who is crucial to the continued profitability of your operation. The business is the beneficiary that receives benefits in the event of the death of insured person. In some cases, it may be possible to withdraw the cash value in the event of the disability or prolonged absence of the covered person, as well. These funds can help offset any short-term losses your business would incur as the result of the loss of your most valuable person.
What would happen to your business if something happened to you? A buy-sell agreement is a legally binding, like a will for your business. Buy-sell agreements are life insurance policies where a business - or its co-owners - are the beneficiaries. Co-owners can use the benefits to purchase the remaining share of the business, your share could be passed to your heirs/ estate, or your agreement could even allow certain employees to purchase your interest.
Want peace of mind that your business will continue to survive even after you’re gone? Succession plans can address a variety of legal and tax issues and determine who will have the authority to run, own, and control your business after your passing. Life insurance is the best way to fund the succession of your business, be it a buyout, transfer, or sale. Term life insurance, permanent life insurance, or a combination of the two, could be used to fund your succession plan.