When you have a business partner, that person is an integral part of your business and while we don’t like to think about it, what would happen if your business partner died tomorrow? Of course, it would be personally devastating, but it could also destroy your business.
Most of us think about life insurance as something we buy to protect our family, but few business partners give it the consideration they should to protect the businesses future should tragedy strike. Your business needs to be protected should the unthinkable occur. The partner’s work contribution and financial contribution are suddenly gone. The only way to do that is to carry adequate life insurance on each partner. Term life insurance is best since it can be purchased for a specific period of time and you can get larger amounts of insurance for the least cost.
Manage an unlimited number of contacts for FREE using Apptivo’s Customers App
Term life insurance is designed to help the business carry on when there is a death. The financial payout can pay off loans, buy out whomever the partner has left his/her share of the business to, hire personnel to pick up the workload and any other costs associated with the loss of that partner.
In the past, it was a bit uncomfortable to purchase a policy on a partner or yourself for that matter. It’s just one of those things you really don’t want to discuss. Today the internet allows you to quickly and easily buy a term life insurance policy without appointments or dialogue. You can quickly compare rates, do the paperwork online, and receive the policy, then file the policy away somewhere safe hoping you’ll never need to look to it.
You need to determine what size policy you need to protect the business if something happens to a partner. Term life rates will vary from person to person and company to company. Things that will affect your rate includes the amount of coverage, the health of the insured, the fixed term, and lifestyle factors. Term life insurance is always the most affordable life insurance option.
Your business is your livelihood and you need to make sure it is protected and as a result, your income is protected. The responsible thing for all business partners to do is carry adequate life insurance to protect all partners should a death occur.