As a business owner, you have the privilege of acquiring unique insurance plans that are tailored for your workplace. A main function of these insurance plans is to ensure that no money is lost in a sudden and/or unfortunate circumstance. Two of the most popular business owner insurance plans are key person insurance and buy/sell agreement insurance.
Key Person Insurance
Key person insurance is simply a life insurance plan for a vital person within a business. In a smaller business, this key person could be an owner, the company president or perhaps even an employee. Whoever it may be, the key person is someone who is crucial to day-to-day operations. Key person insurance comes into effect in the event of the key person’s death and funds are put towards either replacing the key person or other expenses such as paying off loans. If you are just starting out with your business and feel that you, your business partner or one of your employees is absolutely crucial to its success, the key person insurance plan will provide you with peace of mind knowing your business is prepared for the worst.
Buy/Sell Agreement Insurance
Buy/Sell agreement insurance is for a business that is run by two or more partners. Upon the death of a partner, a buy/sell agreement insurance plan is used to buy the deceased partner’s share of the business. The money used to buy the deceased partner’s share is received by his or her beneficiaries – this enables the remaining partners to not have to pay for it out of pocket. It also ensures that the business transitions smoothly, while providing the deceased partners beneficiaries with their share right away. A key feature that Elite Private Wealth builds into its buy/sell insurance policies involves the ability to purchase additional insurance as the business grows without having to do additional medicals.
Deciding How Much Insurance to Purchase
We know it can be tough to decide how much insurance to purchase for your business. Rest assured, an Elite Private Wealth advisor will help you determine the appropriate amount of insurance that meets your business needs now and in the future. The death of a partner can be a devastating blow to your business and can be sudden. The insurance plans listed above will provide you with a sense of security with regards to covering the costs of replacing a partner or key individual, however, there is no telling how long that process may take. For this reason, it is important to discuss the coverage amounts with our experienced advisors.
Contact Elite Private Wealth today at 905-707-5620 or by email: firstname.lastname@example.org.