Continuity Planning for Business Owners
Planning for the future is one of the most important elements of being a business owner. Ensuring that your business will continue to function and prosper without you is extremely important for employees, investors and family. Fortunately, there are certain strategic things you can do today to help ensure that even an unexpected or untimely death of a key player will not drastically impact your business’ ability to continue.
To ensure your business is prepared for the future, Summit can assist you in creating a strategy for a company-owned life insurance policy that can aid in the following ways:
- Buy-Sell Agreements
- Details how a company-owned life insurance policy can be used to purchase the decedent’s interest in the company from his or her heirs in order to maintain continual transition of leadership within the business.
- Replace Lost Corporate Revenue
- The death benefit of a company-owned life insurance policy can be used to help replace lost revenue or to pay costs associated with keeping the doors open; including rent, utilities, lease payments and payroll. It may also help the surviving owners avoid borrowing money or selling assets.
- Replace Lost Personal Income
- If a business owner has family members who depend on the income from a business, which simply could not continue if he or she were suddenly gone, the proceeds from company-owned life insurance could help replace the lost income and help protect the family’s quality of life while they adjust and move on.
The loss of an owner can be devastating to a small business. A company-owned life insurance policy can help reduce the financial consequences and allow your personal and corporate families to focus on the grieving process without the added stress.