If you own and operate a small business, you need to think about what would happen if you were suddenly unable to perform your responsibilities.
Like a lot of small businesses, your business is probably incredibly dependent on you. Your top- to- bottom knowledge and above-average time commitment would make it very difficult to replace you. In the extreme, your business might need to find a successor or be sold.
Losing someone to death is never easy and can be detrimental for businesses who needed the deceased (or disabled). Not only can it caused disruption of the day to day activities, but sales/business development made by the person in question can become questionable; can it still be delivered? Can we pick up where that person left off? Those are very good questions that you have to ask yourself. It can rock the proverbial boat and propagate uncertainty to your employees, clients and creditors.
This is where Key person insurance comes into play and can be a great help for your small business in a time of need.
Key person life insurance provides a relatively inexpensive means of covering costs of replacing a deceased executive, but it also provides re-assurance to the company’s creditors by ensuring that the death does not threaten the company’s survival. Moreover although premiums are paid in after-tax dollars the benefits are tax free.
How much is enough?
As far as the amount goes, you need to consider what your business needs and how much you can afford. We recommend you to ask quotes on the following amounts:
- 100 000$
- 250 000$
- 500 000$
- 750 000$
- 1 000 000$
Mintco Financial Team of independent Advisors will help and guide you in order to figure out the adequate amount required to help the business get back on its feet all the while respecting your budget.
Call us at 813 964 7100 or go to www.MintcoFinancial.com
Also you can email me at mminter@mintcofinancial.com
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