By viralsnob.com 
If you are running a small business and you are putting all your effort to establish your own small business. But wait for a moment! and think that what will be happen if you will not be there to run your business by yourself in future. This is the most crucial question. Because everyone want to do something for the safety of their family or for their children.
If you have a partnership in your business. And you wan to protect your business from overnight disappearance. Life Insurance that is the most powerful tool will help you to protect your business’s financial health. Life Insurance is a basic need to protect your business future. You just have to pay attention to the life insurance policy.
In this blog post I will describe how simple policy can protect your employees, your business and your family’s future.
Why your business needs Life Insurance?
Suppose, you have a purpose to grow your business and you think about the future of your business. But think if one of your partner or the owner of business was not be there in future. It is the reality and it can destroy any small business. In such cases Life Insurance helps you to save what you have built for your small business.
The biggest reason that why Life Insurance is important for a small business is because a lot of businesses have to pay of business debts. For example most of the small businesses get bank loan to buy new equipment for their business or mortage on the office building. But suddenly if the owner of the small business passes away, the bank will ask for their loan. So, if they have claimed life insurance, their business will we able to pay off these debts. Life insurance protect your business from selling your valuable asset and help you to pay off your debts.
By knowing that your effort would not be in vain, it provide you a sense of security. You can run your small business in any case without major disruptions. Life Insurance is beneficial for your employees, your client and your investors. Because your employees will be happy that their job is safe. And investor will see your business is well managed and stable. Life Insurance does not Just provide you death benefit. It is also very important for the stability and the continuity of your business.
Life Insurance is very important to make sure a smooth transition of the ownership also. Because the deceased partner’s family will be able to get the actual price of their share if they don’t have a skill to run and operate their business.
Types of Business Life Insurance
To protect your business through Life Insurance, you have to focus on two main types of business Life Insurance.
1: Key person life insurance
We all know that Life Insurance is the most valuable asset if you are operating and running your small business. But you also have to select the key person of the small business. The key person may be co-founder of the the business or the owner of the business and he is the main person who is operating the business. And his absence may cause some major financial loss in your business. So, you may claim key person insurance.
He will be the beneficiary of the key person insurance and if he passes away, your business will be able to receive the death benefit. You can use this money to operate different expenses during your tough time or use it to pay off your business debts.
2: life insurance for a Buy-Sell agreement
Life Insurance for buy-sell agreement is the most essential tool if you have more than one partner in your small business. It is basically a contract between the partners of the small business that if one of them suddenly becomes disabled or if they decided to leave the business, then they will definitely worry that what will happen to their business owner’s share.
First of all, both of you and your business partner will create a simple buy and sell agreement in which you both have to set the rules about buying a partner’s share. You both set the rules about value of your share and who will be able to buy your share.
Then use the policy of cross purchase plan. For example every business takes a life insurance policy on other partner. Suppose if you are a partner of the business and you want to buy a life insurance policy, you have to buy life insurance policy on the other partner. Similarly if the other partner will a try to get a life insurance policy, he will get a life insurance policy on yours name. And the person who will pay money for the life insurance policy will receive the money as a beneficiary.
Conclusion
In this blog post I have described that why your small business needs a life insurance and after getting a true life insurance policy you can build a strong foundation of safety and security for your business, your partners and your employees. You can also take advice from the financial advisor bout the best life insurance policy. Seek guidance from them and choose the best life insurance policy for small business.