Most small business owners purchase Key Man Insurance which is a term life insurance policy for people who are in an important position in a business. This insurance provides a cash benefit to the company if the owner passes away. Most business owners purchase this insurance for themselves so that the company will have enough funding to continue everyday operations and possibly hire someone to replace them.
In a small business, unexpectedly losing a key member of the team could shut the business down entire if there is no clear plan set for the organization. Business owners should create a plan for who would take over the business if he or she should pass away. Key Man Insurance could help the company transition into new ownership smoothly, without interrupting business.
Small business owners should also consider planning for retirement since their company may not have retirement plans set up for employees. Most senior citizens cannot live on Social Security benefits alone, so they need a second income to survive. Most people want to be able to enjoy retirement by traveling and spending time doing the things they love; if you’re struggling to get by on Social Security, you won’t get to have the retirement you’ve always dreamed of.
Index universal life insurance (IUL) serves as a great retirement savings product. IULs have living benefits as well as a death benefit, so you can use the money during your retirement and leave some for your beneficiaries when you pass away. The income you receive from index universal life is tax-free and accessible whenever you need it – you don’t even have to wait until you reach retirement age to use it. There is also no market risk, so you’ll never have to worry about losing your retirement money.
If you’re a small business owner and are interested in using term life as Key Man Insurance or would like to get a tax-free retirement plan, fill out the form to the right or visit our term life page and/or our retirement page for small business owners.
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