Let us suppose you and your
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
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.
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
The idea of no exam life insurance is by no means new. It is a little more liberal than it used to be and we have a new generation embracing the idea. There are many variations to this policy.
The 20 year term life insurance policy can be effectively used in oh so many situations. We will look at some of them but first let us define what this policy is all about.
The 10 year term life insurance is one of the simplest and most easily explained types of life insurance.
Let us take a look at the 10 year 20 year and 30 year term life insurance policies.
There are many pages on this website on term insurance details and how it works. What I want to do on this page is give you a basic and general outline of this policy.