The policy provides financial support to the family and heirs of the business owner after their death. It helps avoid financial difficulties and keep the business in family ownership or sell it on favorable terms.
Having life insurance can increase the level of trust of partners, investors and creditors in a business, which in turn can simplify obtaining of loans, attract investments and improve the financial position of the company.
Insurance proceeds can be used to pay off business debts, taxes, or compensate partners or heirs in the event of the owner's death.
Some types of life insurance may also include benefits for employees in event of key team members’ deaths; this will help attract and retain a strong team.
Overall, life insurance is an integral part of small business planning and risk management. It promotes stability and protection of the entrepreneur’s interests.
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