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Why Life Insurance Is Essential for Small Business Owners

As a small business owner, you have many people relying on you. After all, you are responsible for an entire company of people and it’s important there are protections in place for you and your employees in the event that the unexpected happens. Below, the experienced professionals at Unity Insurance discuss why life insurance is essential for small business owners. 

Protect Your Family

As a business owner, you will want to protect not only your business, but your family. The income you currently receive helps support your family, and if the unexpected were to happen, your family would need financial support to make the right decisions regarding your small business. These decisions would include whether or not to pass the business down to a family member to take over, or even selling it altogether. Life insurance allows you to avoid any disruptions in your business and it can offer the layer of protection your family may need.

Protect Your Business Partner

Oftentimes, if you have a business partner, you want to ensure that, if you were to pass, that the business will be secure following your death. Having life insurance will provide your business partner with the opportunity to purchase your shares. This can not only protect your business partner, but your employees as well. It can also prevent your family members from having to make those difficult decisions regarding your business following your death. 

A buy-sell agreement can be incorporated into a life insurance policy. A buy-sell agreement provides the living partner the option to buy out the surviving family’s portion for a predetermined price. The buyout is covered by life insurance.

Protect Your Employees

As a small business owner, your employees depend on you for their income. You will want to have a plan in place to protect your employees, in case of your death. Having a life insurance policy can allow you to keep your key workers employed following your death. Life insurance policies can help keep your business running. Even if your assets are entrusted in your business, life insurance can help keep your business functioning. Taking up life insurance on a key employee can ensure the long-term stability of your business. 

Assist in Loan, Debt and Other Payments Following Your Death 

If you took out any bank loans for your business, you don’t want the responsibility to fall on your family members or business partners. Life insurance can assist your business partner or family members in paying off any loans or debt that you had accrued overtime owning the business. If you rent an office or commercial property for your small business, life insurance can cover rent payments or other business expenses that you might have. 

Speak To A Unity Insurance Agent Today About Your Life Insurance Options As A Small Business Owner

Choosing a life insurance package can be overwhelming and stressful. Our agents at Unity Insurance are here to guide you through the process and help you make the right decision for not only you, but your business, family and employees. Contact us today to speak to an experienced agent today about life insurance policies.