Have you ever wondered if you need to consider some form of business insurance for your particular situation? Been pondering the ‘What-ifs?’ Perhaps you could try asking some of the following questions to assess your own Buy-Sell Insurance needs…
- Will the remaining business owner be happy to work with the surviving spouse or beneficiary of the deceased?
- Can the family members of the deceased add skills to the management of the business or will they hinder the business & still insist on drawing a wage or profit share?
- How much will the business be prepared to pay for the deceased owners’ share of the business, over how long and how will it be funded?
- Do you also need to consider Debt Reduction or Key Person Insurance?
- Will the bank call in any guaranteed loans if they are concerned about the business remaining viable?
- If yes… When will the loan need to be repaid?
- How is the business to repay loans if an owner dies?
Once the needs of your business have been identified, the goal of the insurance is to provide a funding mechanism to help the business survive the loss of a key person.
Shareholders, Employees and Creditors are also able to see that business has demonstrated sound financial management and sensible planning. Feel free to call the team at Wealth Planning Partners for an obligation free assessment of your particular business needs.