Small Businesses Need Life Insurance for Patrons; Here’s Why

Small businesses have lately been on the rise, the economy proving suitable enough to nurture a market where these can thrive. However, the economy is as easily prone to fluctuate, which causes a certain – justifiable – amount of concern, especially for small business owners and employees. This is particularly true, because, as a key individual in the functioning of a small business, it is not just your family that depends on you, but a host of other people, including other employees, customers, and partners.


For small businesses, it is important to have both personal life insurance for the key individuals, as well as business insurance to secure the business. In case of personal tragedy to one of the stakeholders, the business might suffer losses. In such an instance, insurance and the benefit can help cover the losses the business might incur. In addition, a loan or collateral is taken to advance the small business, and as yet unpaid, it can be covered with the insurance benefit received. It is vital for small business owners to think about their business as well as their family and other dependents while buying insurance, and plan accordingly.


Life insurance can also help secure your business more directly through key person insurance and supporting buy-sell agreements, making sure that the business outlives you. Key person insurance is of primary importance here: in this case, the company pays for and is the beneficiary of the insurance. Thus, if a vital person were to pass away, without whom the company would incur losses, such insurance acts as a cushion, and can be used for a number of things.


Key person insurance can allow a business to look for alternative leadership, or pay off any debts or investors, as well as employees. In this way, key person insurance for important people within the organization could be one of the most rewarding investments you make towards your business.

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