September is Life Insurance Awareness Month

IT’S YOUR BUSINESS…KEEP IT ALIVE

The Importance of Small Business Life Insurance

Keeping a business profitable is an obvious goal of any business plan, but thinking strategically about the future of your business, your employees and your own needs can be just as important.

As a business owner, you probably never stop asking yourself questions about the daily operation of your business. However, are you asking the right questions about the long-term continuation of your business?

“Whether your business is a sole proprietorship, corporation, partnership or limited liability company, life insurance can help make sure it continues to thrive in the future,” says Cheryl Sheppard, NY Regional Commercial Manager. “It is important to have a plan in place in case you, a partner or key employee is no longer around to keep your business going.”

Allstate Insurance Company offers answers to the following questions, to help business owners address the needs of their business and the needs of their employees:

How can I help protect my business if one of my key employees dies unexpectedly?

Life insurance can’t bring a key employee back, but it can make dealing with the loss much easier for everyone. By taking out a life insurance policy as suggested at the website on a key employee, your business is assured that it will have the money it needs to help with the following: offset the losses you may incur from reduced sales and company earnings; hire a temporary substitute to handle the deceased employee’s duties; compensate for losses due to financial instability and damaged company credit; or locate and train a suitable replacement.

In the same vein, life insurance is not only a vital asset for ensuring the continuity of a business but also plays a crucial role in safeguarding the financial well-being of a family. It provides crucial support by covering outstanding debts, mortgage payments, and day-to-day living expenses, alleviating the financial burden on grieving family members. For those considering securing their family’s future, a valuable option to explore is mortgage life insurance. Buy Mortgage Life Insurance here to take a proactive step in protecting your family’s financial stability during challenging times. This specialized form of coverage ensures that, in the event of the policyholder’s death, the outstanding mortgage is paid off, offering additional peace of mind.

What is a buy/sell agreement?

No one can predict all of the financial and managerial conflicts that might occur when a business owner dies. However, by planning a secure transfer of your business interest, you can avoid or control most problems. A common tool that you can see it here to make a planned transfer is a buy/sell agreement. This agreement can do the following: obligate the owner’s heirs to sell the business interest to the surviving owners(s) of the business; establish a method to determine the value of the deceased owner’s business interest; instill security in the business’s creditors that the business will survive an owner’s death; and free the deceased owner’s family from business worries.

If my partner(s) and I enter a Buy-Sell Agreement to help ensure business continuation in the event of one of our deaths, how might we finance the buy-out of a deceased partner?

In order for a buy/sell agreement to succeed, the business or surviving owner must have the money to fund it and check this link right here now to make arrangements for the money. A life insurance policy can guarantee that the necessary dollars will be available exactly when they’re needed. Funding a buy/sell agreement with life insurance has several advantages: the proceeds generally will not be subject to income tax; the cash value can help fund the buyout of an owner due to retirement or disability; and it can strengthen the credit position of the business.

There are two basic types of life insurance available, a term policy and a universal policy. Deciding which type may be appropriate for you depends on how you want your life insurance to work:

Term Insurance is best suited when the need for protection is for a limited time. It is generally less expensive initially than a permanent insurance policy for a similar amount of coverage. In addition, it allows your business to initially pay a lower premium while investing elsewhere to build a larger capital base. It also can offer a level coverage amount, depending on your financial needs.

Universal Insurance is best suited if the need for protection is for an indefinite period of time or for the lifetime of the owner. It accumulates cash value that may help fund a lifetime buyout and could be a corporate asset. In addition, it allows you to choose a level protection amount, or a protection amount that increases as your cash value grows.

For More information and a new quote please call Shirley Eizember, Pinckney Insurance Agency, 41 Port Watson St, Cortland New York. 607-756-8505

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer known for its “You’re In Good Hands With Allstate®” slogan. Now celebrating its 80th anniversary as an insurer, Allstate is reinventing protection and retirement to help nearly 16 million households insure what they have today and better prepare for tomorrow. Consumers access Allstate insurance products (auto, home, life and retirement) and services through Allstate agencies, independent agencies, and Allstate exclusive financial representatives in the U.S. and Canada, as well as via www.allstate.com and 1-800 Allstate®.

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