There are so many moving parts when a business. If you’re like most small businesses, could you imagine the impact of a key employee dying? First, there is the employee’s family and their needs. Second, there is the business and this is where it can get complicated.
Purchasing life insurance for the family is critical. Purchasing life insurance for the business may be even more important. No matter how well-run a company is there is a shock to the system when an owner or key employee dies.
Did you know that at the death of an owner, small to medium-sized businesses lose more than 60% of sales? And you may be like other small businesses that rely on 1 or 2 key employees, many of these businesses have a significant reduction in sales after the death of a key employee or are out of business within a few years. That’s scary.
Well-planned life insurance for your business is inexpensive and can help stabilize your cash flow and help you prepare for life without you or one of your key employees. So often, owners forget that the process to replace themselves or other key employees could be expensive at the time of need and the time it takes for the replacement employee or owner to get up to speed could be long and bumpy…all that takes money.