Succession Planning secures the life of your business for the long-term and ensures its operations are carried out in the manner that you desire. It also plans for a well-executed transition along the way.
Buy-Sell Agreements provide a road map for the company to continue its operations in the event of an untimely death or disability. It should also provide a predetermined value or valuation method for the business so that your family receives fair value for the business that you have worked so hard to grow.
Life and Disability insurance can provide your business partner(s) or key employees the liquidity needed to buyout your family should the unexpected occur. Cash value life insurance can also provide a savings vehicle that can help the next generation fund a buyout of your business interests.
Key Person life and disability insurance can provide benefits that help offset financial losses that occur with the death or disability of a key employee. Key person insurance benefits provide assets for the following:
- Replacement of revenue
- Recruiting and training a replacement
- Enhances the creditworthiness of the company for commercial borrowing purposes
Contact an adviser to learn more about Life Insurance’s role in successful Business Succession Planning.