If you own your own business, or are a partner or partial owner of a business, you need to consider life insurance to protect your family, your partners and your business.

This type of insurance, often called “buy-sell” life insurance, is purchased in connection with a buy-sell agreement between business partners or between a business owner and his or her estate.

In the event of the death of a business owner, the proceeds from one of these life insurance policies can provide cash funding to enable partners to purchase the ownership interest of the deceased party. This provides many benefits including protection for the family of the deceased partner, and the peace of mind for the remaining partners knowing that they will have the necessary liquidity to continue operation of the business.

Business purpose life insurance is also a valuable tool to plan for payment of estate taxes in the event of a business owner’s death. Often times a business will be valued to where payment of estate taxes will be due. With a life insurance policy in place to provide cash to pay those estate taxes, the risk of a business needing to be liquidated to pay such taxes will be eliminated. This is a tremendous benefit for family owned companies.

From time to time banks will require the owners of a closely held business to purchase life insurance to protect the bank’s interest in the event one of the owners would pass away. Insurance Centers, Inc. can assist your business in finding the most affordable alternatives to meet its needs.