shopify analytics ecommerce
tracking

How Much Life Insurance

For Small Business?

How much life insurance for small business? Should you buy term life insurance or permanent life insurance?

Let us suppose you and your partner own a business that has a book value of say $1,000,000 and a going concern value of $1,400,000.

You own 60% of the business and your partner owns 40%. Let us further suppose your partner had an automobile accident and died.


Don't pay too much for life insurance! Shop and compare Quality Quotes from Quality Carriers first. Just answer a few quick questions then get your Quotes. The process is Easy and FREE. Click Here For Free Quotes


How Much Life Insurance For Small Business?

Would you want to have his wife as your partner, or, better yet...would she want to be your partner? Do you not think you should own the whole business? Should your partner's wife not be fully compensated for the full value, that is, going concern value, of your partners share of the company.

How much life insurance for small business will depend on the needs of the particular company.

Where is the money going to come from to buy the heirs share? Suppose the wife does not want to sell. These are questions that should be answered before such an eventuality occurs.

First of all your partner and yourself need to have a buy-sell-agreement that would stipulate that in the event of the death of one of the partners the survivor would buy the shares of the deceased partner for a predetermined amount of money.

This agreement would be drawn up by an attorney and signed by both parties. This agreement is binding and should be reviewed annually.

The best way to fund such an agreement is through life insurance. For most businesses term insurance is OK on a temporary basis...a temporary solution.

Your partners wife would receive $560,000. That is 40% of the going concern value of the business. You would own the whole business and everybody would be happy.

I mentioned that you could use term insurance to fund the agreement. Remember...term insurance is for a specific number of years and will expire after this period. This term policy should be converted to permanent life insurance when you are able.

Use these ideas to help you determine how much life insurance for small business.


Want to protect your family with life insurance? Take a Free look at Top Quality Life Insurance Quotes from a Highly Rated Carrier and Save. Click Here For More Info


How Much Life Insurance Business Life Insurance How Much Life Insurance For Small Business Sole Proprietorships Partnerships S Corporations C Corporations Key Employee Life Insurance 5 Year Term Life Insurance 10 Year Term Life Insurance 15 Year Term Life Insurance 20 Year Term Life Insurance 25 Year Term Life Insurance 30 Year Term Life Insurance Limited Liability Companies Direct Life Insurance Explanation Of Term Life Insurance Financial Planning Fixed Annuities Free Life Insurance Quote Graded Premium Life Insurance Incontestability Individual Disability Insurance Inexpensive Term Life Insurance Joint Term Life Insurance Lapsed Life Insurance Policies Level Term Life Insurance Life Insurance Buying Tips Life Insurance Dividends Limited Payment Life Insurance Long Term Care Lost Life Insurance Policy Mortgage Insurance No Exam Life Insurance No Load Life Insurance Nonforfeiture Values Online Insurance Quotes Retirement Planning

Tools And Resources

Life Insurance Need Calculator

Recent Articles

  1. Life Insurance - Reasons Why You Should Buy Now

    Should life insurance buying be seen as an urgent matter? There is something about some people that at times may cause them to procrastinate about matters that could end up being quite costly...

    Read More

  2. Affordable Term Insurance - Affordable Term Life Insurance Policy

    Let us talk affordable term insurance. You want a policy that can fit into your budget, right?

    Read More

  3. Advantages Of Whole Life Insurance - Advantages To Owning Whole Life Insurance

    It can be a very satisfying feeling when you become aware of the advantages of whole life insurance for the first time.

    Read More

  4. Best Term Life Insurance Rate - Learn Which Is The Best Term Insurance Rate

    The best term life insurance rate can be quite easily found on the internet today because web insurance companies have done intense research on behalf of the consumer.

    Read More

  5. Great 30 Year Term Insurance Policies Explained - 30 Year Term Life Insurance

    I recently did some research on the development of the 30 year term insurance policy over the years. What I learned was quite interesting.

    Read More