Business Protection Strategies
Key Person Life Insurance
Key Person Life Insurance– protects and reimburses a business from the risk of losing a key person who is critical to the continued profitability of that business. Key advantages of life Insurance often includes the confidence provided to a business’s creditors, stability to potential buyers of a business who seek future continuity, as well as cash value that can be used to fund retirement income and/or a buy-out of a deceased owner’s equity.
Buy Sell Agreements
If you are or have ever been in business with a partner(s), then you know that your business relationship is very much like a marriage. Although in some marriages, a couple will enter into a prenuptial agreement to protect one or both partner’s assets from a marital breakup, business partners often overlook the potential difficulties from the failure to pre-plan how to carry out and fund the process of when a business owner leaves the company due to an unresolvable dispute, a disability, death, or even personal bankruptcy . If your spouse dies, you generally know how their share of the marital assets will be handled. But if your business partner dies, becomes disabled, or even gets divorced, do you know who inherits their ownership interests, or whether you will now be making business decisions jointly with your former business partner’s spouse, your business partner’s ex-spouse or children?
