Businesses, like family, can be a labor of love. Unfortunately, many business owners don’t take the time to plan for the success of their business like they do for the success of their family.
Owners of closely held businesses typically need insurance for the same reason individuals do: to replace income and to help protect the future of the company. If a partner, owner, or key employee is suddenly gone, the business can deteriorate quickly. With the right insurance, the surviving business partner(s) will have adequate capital to keep the enterprise going while looking for a way to either replace the deceased partner, or to purchase the business interest from the heirs of the deceased partner.
In the event of an unexpected death of a key shareholder or owner, proceeds from life insurance are commonly used to redeem the interests of deceased partners or shareholders through a legal instrument called a buy/sell agreement. The type of life insurance that is deployed can vary widely, depending on timing, cash flow, and insurability.
Greenberg, Wexler & Eig looks at every variable to help business owners determine an appropriate policy type and amount for their particular situation.
If you’d like to be contacted regarding an insurance quote for your business, please complete this form.