29 Nov 2018
Here’s Why Business Owners Need Life Insurance

Protecting your small business in the event of your unexpected death.

If you are a small business owner, your loved ones aren’t the only people depending on you. Your death could also put your employees, business partners, and actual company at risk. To protect the business that you worked so hard to create and maintain during your lifetime, you need to secure life insurance coverage. Here are some of the reasons why.

  • Protecting Your Loved Ones

Your family relies on the income your company brings in to survive. Additionally, you might have taken out loans backed by your family’s assets to get your business up and running. However, in the event of your death, your loved ones may not be able to assume your leadership role, leaving them without a steady source of income and with mounting debts to pay. By securing life insurance now, you can ensure that they have the funds they need to tide them over in the wake of your death. Your life insurance benefit can help replace your lost income and pay off your debts. This buys your family enough time to sort out what to do with your company.

  • Protecting Your Business Partners

Just like your family, your business partners are financially dependent on your small business’s success. If you were to die unexpectedly, your partners might not be able to assume your role or buy out your shares of the company. This, of course, could bring business operations to a screeching halt, forcing your partners to make drastic decisions. For instance, they may feel pressured into selling the company for far less than it’s worth so they can rid themselves of the financial burden. By securing a life insurance policy and naming your business partners as beneficiaries, you can allocate some of your insurance payout to keeping your company afloat. This will allow your partners to bring in someone to manage the business or to look around for a buyer who will actually offer a fair price for your company.

These are some of the reasons why it’s so important for small business owners to secure life insurance coverage. Are you looking for the right policies to protect your loved ones and your commercial interests? If so, contact the experts at Patterson & Associates in Richardson, Texas. Our dedicated team is ready to assist you with all your insurance needs today.