Call Us Today206-441-2979
Business Life Insurance

Business Life Insurance

Life insurance for businesses, often referred to as key person insurance or business life insurance, is a type of coverage designed to protect a business against the financial loss that may occur due to the death or disability of a key employee or owner. Here’s how it typically works:

  1. Key Person Insurance: This type of policy insures the life of a key employee or owner whose death or disability would significantly impact the business’s operations and finances. The business pays the premiums and is the beneficiary of the policy, receiving a payout in the event of the insured individual’s death or disability. The funds can be used to cover expenses such as recruiting and training a replacement, paying off debts, or compensating for lost revenue.
  2. Buy-Sell Agreement Funding: In closely held businesses with multiple owners, a buy-sell agreement is often established to outline what will happen to an owner’s share of the business if they die or become disabled. Life insurance can be used to fund the buyout of the deceased or disabled owner’s share, ensuring that the remaining owners have the funds to purchase the shares from the deceased owner’s estate or from the disabled owner.
  3. Business Loan Protection: Businesses that have outstanding loans or debts may use life insurance to protect against the financial impact of the death of a key person responsible for repaying the loans. The insurance proceeds can be used to repay the outstanding debts, preventing financial strain on the business.

Overall, life insurance for businesses provides financial security and peace of mind by helping businesses mitigate the risks associated with the loss of key individuals who are vital to the company’s success.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

©2024. All rights reserved. | Powered by Zywave Websites