Protecting Your Business With The Help Of Million Dollar Life Insurance

Imagine the following scenario: your business partner loses his or her life in a car accident and the shares pass on to his or her family or surviving relatives. They now control half of the company’s shares and they decide to sell the business. You now either buy their shares at a high price or agree to sell the company.

cost-of-life-insurance-350x3502Another grimmer scenario would be to lose your own life and to let your family handle the company. You can never predict what the future hold and since your family will depend on the business, you must do everything you can to protect both. How do you do this? By purchasing life insurance. A million dollar insurance policy can help you protect your business in a number of ways:

1.       Buy-sell life insurance agreement

Purchasing a buy-sell life insurance agreement is a simple way of preventing the first scenario from happening. The basis of this agreement is that you and your partner each agree upon a fixed price for company’s shares. If one of you dies, the remaining partner can buy the shares for the agreed price. The family of the deceased partner will receive the amount paid for shares as a benefit.

2.       Individual life insurance

Individual life insurance pays a death benefit to your designated beneficiaries after you die.  If you die, you will not be able to manage your business and you will have to let matters into your family’s hands. Whether they are good or bad managers it does not matter too much if something goes wrong. A million dollar insurance can help your company gain a solid foothold on the market and it will protect your family against financial hardships that may come if the business goes bankrupt.

Having a business is a big responsibility and you have to do everything in your powers to protect it. After all, your family depends on your company, so keeping profits high will benefit everyone.

If you need life insurance, the best way to find the cheapest policy is by searching for quotes! We have important connections with top providers. Click here for a list of quotes!