By Mike Smith
Having the appropriate insurance on a business partner or a key employee in the office, can play an important role in having a successful financial plan for your business. If you own or co-own a business, here are a few items to consider:
- Is your Buy/Sell Agreement or Operating Agreement current and signed by all relevant parties?
Review your document every three years or as major changes occur such as a new owner or
acquisition. - Is your business valuation current and accurate?
- Often, life insurance is purchased to provide the funding to buy out a deceased owner, but the
value of the policy may not keep up with the growth of the company. As the value of the
company grows, so should the amount of life insurance. - Disability Buy Out insurance provides money to buy out a disabled partner who is not returning
to work due to illness or injury. - Key Employee life insurance and disability plan will provide funds to the business to replace an
employee that is deemed critical to business operations should the key employee die
prematurely or be unable to work.
Should you have any questions or want to learn more about these topics, contact a WFA advisor or Mike
Smith at Mike@cpshorizon.com.