Life Insurance Can Keep Your Small Business in the Family

Ready to compare quick life insurance quotes?

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption

Tim is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. He writes and creates stuff for QuickQuote and other insurance and financial websites. You can find him on Twitter.

Full Bio →

Written by

UPDATED: Aug 12, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right life insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We partner with top life insurance providers. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

What could be more of an honor than knowing your family is involved in and dedicated to your business?

After all, you’ve put your heart, soul, and dollars into putting it on the path to success. There’s comfort in knowing your spouse and your heirs value what you’ve built and want to see it grow and prosper.

But do they have the peace of mind they need as well?

If something were to happen to you, would your family have the financial means to continue operating your business?

Keeping Your Business in the Family With Business Continuation Life Insurance

Business continuation insurance is one of the four main types of life insurance to reduce business risk available to entrepreneurs.

You might argue that all types of business life insurance are for the purpose of business continuation. My focus in this post, however, is to speak to how it can help a business owner’s family maintain a business.

With a business continuation life insurance policy, you can ensure your heirs have the funds they’ll need to pay expenses and continue operating your business. If you were to pass away, it would ideally be a part of a well-thought succession plan – something necessary to avoid misunderstandings and undue conflict during an already difficult time.

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption

A Business Continuation Policy Could Make the Difference Between Your Business Surviving or Failing.

Business continuation life insurance can help your heirs afford to…

  • Pay down business debt.
  • Get training to ensure they have the skills and knowledge necessary to run the business.
  • Find and recruit staff if necessary.
  • Financially cope if company sales or productivity suffer after your death.

As with the other types of business life insurance, you can find either term life insurance or permanent life insurance (whole or universal) policies to protect your business and your family. From an affordability standpoint, term life insurance offers more flexibility and lower-priced premiums, so they’re more affordable if you’re budget conscious.

It Pays to Plan

The majority of family-owned businesses in the United States don’t survive into the second generation. Only about 30 percent do, and just 12 percent go onto the third generation.*

That’s why it’s so important to have a formal business succession plan in place that includes business continuation life insurance. Not only should you consider talking with a qualified, trusted insurance agent, you should also think about enlisting the expertise of an attorney familiar with the challenges family-owned businesses face.

*Source: Family Business Institute

Ready to compare quick life insurance quotes?

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption

QuickQuote is a BBB Accredited Business. QuickQuote Financial, Inc. BBB Business Review