Even If You Are A Sole Proprietorship, You Need Life Insurance

Too often mall business owners think their business is so small they don’t need to worry about issues that larger companies consider, such as the continuation of the business in case the owner dies.

However, this is a rather short-sided view of the impact the business has on their family and the family’s lifestyle.

If you are like most people, you might believe a life insurance policy purchased years ago is enough to cover the loss of income in case you die. However, there are other things to consider. For instance, have you spoken with your family about what they want to be done with your business? They might want to continue the hard work you have put into your venture.

Here are a few reasons you should consider a life insurance policy even if you feel your family is already adequately covered by other forms of insurance or savings.

Protecting Your Family From Any Legal Issues That May Arise
Even if you are the sole owner of a business, you probably have established business contracts with a number of clients, suppliers, or other businesses. If your business suddenly closes down and causes, or is perceived to have caused, problems for another company, your business, and possibly estate, could be sued. These are the kinds of costs that might drain your cash reserves and force your family to start using their own money to pay off settlements.

Fend Off Creditors
Did you borrow money from a family member or friend to start your business and you are still paying them? These relationships can be ruined and divide a family if the debt isn’t settled. A life insurance policy can be used by your family to pay the debt. This would be a significant relief to your family during a time of emotional turmoil and stress. The last thing people want is their death to cause divisions within a family.

Continuing The Business
As mentioned previously, your family and you may have plans to maintain your business in the event of your death. However, they may need to hire consultants or experienced people to help them keep it going. After all, as the sole proprietor, you probably have the most substantial amount of knowledge about your company and marketplace; however, your family may need to bring in consultants to help them learn the intricate features of your company and industry.

Cost Of Closing The Business
Should you desire to close the business, and your family agrees, then you should provide them an amount of money that would help them pay off any loan debts, business expenses, outstanding bills, and provide for the final payroll of any employees.

Life insurance is more than providing for your family financially. It is also there to give them peace of mind during the tough transition of losing a loved one. At Flagler Financial we work with many different businesses in setting them up for continued success by providing the correct amounts and types of insurance.

As you are planning for the future of your business, we invite you to contact us to learn how to position your insurance into your business plan correctly. We are an experienced boutique insurance agency centered in the Palm Coast area of Florida.