2 minute read – 71% of small business owners surveyed said they have thought about who would run their business in their absence, but only 35% of all surveyed had a business continuation plan (1).
Many business owners don’t have formal plans to transfer their business to a successor in the event of retirement, disability or death. A business may fail due to confusion and lack of a clear plan after such an event.
Not to worry, we’re here to help business owners create a continuation plan using life insurance policies (the funding tool).
Life Insurance: What we provide
- Establish a guaranteed buyer at the time of the triggering event
- Sets a price for the business when the business owner is less vulnerable and ensures the business will be sold at a fair market value
- The surviving business owner(s) won’t have to run their business with the deceased person’s family members (if they choose not to)
- Provides liquidity, when the family needs it most, to fund the sale of the business to surviving partner(s) due to death and or long-term disability.
We will help you prepare business valuations, leading to designing the proper life insurance illustrations and related concepts.
This is a team approach, we handle the all important life insurance and corporate disability insurance discovery-discussion with you, develop that just right concept to plan implementation. Often coordinating conversations with other vital advisors on your team.
#BusinessSuccession planning and funding.
Contact: [email protected]
(1.) Lifehealthpro.com, New Tax Laws Open the Door for Business Insurance Discussion, April 2011. Survey was based on 874 small businesses with 100 employees or less.