Business Life Insurance
If you die unexpectedly, what would happen to your business? How would your staff react to a sudden loss in leadership? More importantly, who would financially take care of your family and their interest in your business?A business life insurance plan from Sentry can help ensure that your family and business are taken care of when you die. Sentry’s plans include:
Key Person Protection
Key Person protection replaces lost profits resulting from your unexpected death or the death of a key employee. Learn moreBuy/Sell Protection
Buy/Sell protection ensures that the family members and/or key employees who you designate will be able to continue the business and your estate will receive a fair price. Learn moreBusiness Debt and Family Income Protection
Business debt protection guards your estate and business from asset liquidating by satisfying mortgage and debt obligations. Income protection also ensures your dependents will continue to receive an income. Learn moreKey Person Protection
If one of your top executives, top sales professionals or other key employee dies, could your business make up the lost income while you recruited and trained a replacement?A key person life insurance plan can help defray recruiting expenses, relocation expenses, training expenses and added salary for the new employee.
Determine Your Key Person Protection
(guideline is three times the key person’s current salary)
1. Profit Protection – How much of your annual profits would you like to replace and for how many years?
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2. Replacement Protection – How much cash would be needed to hire, move and train a new key person?
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Buy/Sell Protection
As a business owner, your business interest passes to your heirs when you die. Although your heirs inherit the business, they may not work in the business and may have no desire to do so. What happens to your business if you die?A properly funded buy/sell agreement using life insurance may ensure that the family receives a fair price for the deceased's stock and that the surviving stockholders will be able to continue the business. Business life insurance on each owner may ensure that there is cash to pay for the deceased's share of the business.
What are the alternatives for your heirs and any other surviving owners?
For the Heirs
Enter Business with Survivors
- What salary should heirs receive?
- Is this desirable?
Buy Out Business
- What salary should heirs receive?
- What is the price?
Sell Stock to Outsiders
- Is there a market for the stock?
Sell Stock to Survivors
- How do you assure a fair value?
For the Surviving Owners
Accept Heirs into the Business
- Do they have experience?
- Are they active in the business?
- What salary should they receive?
Sell to Heirs
- Is it practical?
- What is the price?
- Where do they get the money?
Accept an Outsider who Buys Heirs’ Stock
- Do they have experience?
- How active will he/she want to be?
Buy Out Heirs
- What is the price?
- Where do you get the cash?
- Will they sell?
Business Debt and Family Income Protection
Most small business owners must personally guarantee the mortgage on their land and building. This means that if you, the business owner, should die, the lender may claim both your business and the building; and can claim your personal assets that are not exempt. Also, if you die, the income from the business that helps to support your family could stop. If you die, would your family have the cash to cover your business debts and mortgage and have enough sufficient income on which to live?A strategically prepared business life insurance policy may ensure continued family income and provide the funds to pay your business debts, while supporting your business through the initial months of your absence.
Determine Your Needs
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Let a Sentry sales representative help you protect your business with business debt and family income protection funded with life insurance. Click here to Find an Agent.
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