Permanent life insurance is a great way to fund a business succession plan, yet 40% of business owners don’t have life insurance.
Permanent life insurance offers five advantages you won’t find in common funding options like loans and working capital:
- Guarantees a fund to facilitate and back sale
- Protects your family if something happens to you
- Eliminates relying on future profits to fund your retirement
- Reduces strain on earnings
- Creates a legacy plan
A permanent life insurance policy assures there will be funds or resources available when the time comes to complete the succession plan, and it also offers built-in protection for your family.
Having permanent life insurance as part of your succession strategy can give you a significant advantage. Today, 40% of business owners don’t have life insurance, and 50% of businesses are under-insured because they don’t think their business has value, don’t know how to find out, or just don’t have the resources to do so.
Life insurance can also be a good option because it helps avoid the risks that come with relying on working capital and loans, while providing important benefits.
If you are missing this component in your succession plan—or don’t have a succession plan yet—please look at your options below and schedule with me to discuss further.
