Why Life insurance for Business Owners is Important
The death or long-term disability of a business owner may lead to internal turmoil, customer erosion and disruption in revenue flow. Many owners’ net worth is tied up in their businesses and while dealing with the day-to-day rigors of growth, they don’t think about disruptive events. Life insurance can help mitigate some of the risks involved with business ownership.
We can structure a plan in various ways to help accomplish your goals. Whether it is a cross-purchase plan, where each partner owns insurance on each other, to an Entity purchase plan where the business owns the insurance.
We typically include a buy/sell agreement to ensure that your business remains in capable hands should the need arise.
Some of the benefits of life insurance and buy/sell agreements for businesses are as follows:
- Provides money to create a fair market value exchange
- Promotes equitable and orderly transfer of wealth, ownership and management
- May offer tax advantages
- Guarantees heirs a buyer for assets they may not know how to manage
- Provides heirs cash to pay estate debt, expenses and taxes
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.