Life Insurance for Businesses
You are your Business. Protect it by covering you as the business owner. Ask us today for your Life Insurance proposal.
What types of policies are available?
The types of policies are the same for businesses as they are individuals.
There are two basic types of life insurance policies:
- Term insurance- provides protection for a specified period of time as long as the premiums are paid.
- Permanent insurance- provides protection designed to remain in force your entire lifetime as long as the premiums are paid.
What situations would prompt my business to consider life insurance?
Key man insurance provides peace of mind to business owners knowing that the business can continue operations without major disruption in the event of the death of the key person. Key person insurance could be the difference between the company’s demise and its ultimate success. A key man or key person can be anyone directly associated with the business whose loss can cause financial strain to the business. The person could be a partner, director or officer of the company, a project manager, a sales person, or someone with specific skills or knowledge which is extremely important to the company.
How does the policy work?
The business will own the policy, pay the premiums and be the beneficiary in the event the key employee dies. Key person insurance policies are designed to protect the business not the key employee. If a key employee dies, the policy proceeds can be used by the company for any purpose. Normally, businesses will use the funds received from a key man policy to cover expenses associated with finding capable replacements or to cover short term revenue deficits. If your business is in need of key man life insurance, Lewis Insurance agents are available to help you maintain your business as usual.
Life Insurance can also be used to buy out partners or shareholders in a buy/sell agreement if there is an unexpected death of an owner. If a partner personally guarantees a loan for the business, a life insurance policy may help obtain the loan. If you have questions about life insurance protection for the future of your business, contact Lewis Insurance Associates today.