Whole Life for the Entrepreneur and Business Owners

Whole Life Insurance for the Entrepreneur: Everyone should have life insurance. But- as a business owner, you need more protection than you can get from just a personal policy. Whole life insurance can be equally important for your family’s protection if you own a business. Here are 3 top ways:

1. Income Replacement

If your family relies on your income, they’ll need money to care for themselves after you’re gone. The death benefit can cover your salary and your other contributions to the household, like childcare.

2. Buy-Sell Agreement

Each partner purchases life insurance on the others. If one owner dies, the others use the death benefit to buy the deceased’s company shares. Not all buy-sell agreements have to involve life insurance, but we recommended it. If the surviving owner(s) can’t buy back the company’s shares, it puts the business at risk.

3. Cross-Purchase Agreement

Establishing a buy-sell agreement allows you to set up a cross-purchase agreement, which adds life insurance policies into the buy-sell contract. Each partner purchases life insurance on the others. If one owner dies, the others use the death benefit to buy the deceased’s company shares.

This is serious stuff.

We’ve pulled together all our content on Whole Life for entrepreneurs and why YOU need a policy in your business. Check out the playlist here.