At some point, every small business owner needs to consider what would happen to both their family and their business if something unexpected and tragic were to happen to them. When you’ve invested a significant part of your life in the creation and growth of a business, these concerns are especially paramount.
That’s why taking out a life insurance policy for business continuation is so critically important – it’s the best possible answer to the question that nobody wants to ask: “What happens to my business if I can no longer run it?”
If you die or become disabled, life insurance for business continuation ensures that you can protect both your family and the employees at your business who depend on you for income and stability.
Life insurance for business continuation ensures that you can cope with all the unforeseen hardships and cover all the eventualities,” according to Stathis Stasis, a Business Insurance Advisor at EuroLife Ltd in Nicosia, Cyprus. “It’s an easy decision for anyone who’s serious about protecting the value of a business,” he says.
When it comes to business continuity, three are different types of insurance policies available, but individual life insurance is easily the most important –and most popular – option. Any individual life insurance policy for business continuation will provide funds to cover current debts, ongoing living expenses and future operating plans of the business.
Here’s one scenario – a dynamic entrepreneur creates and launches a successful new business and uses debt or bank loans to grow that business. In the process, he or she becomes the face of the business at industry events, helping to shape the management of the organization and playing a major role in bringing in new clients. His or her name may even be part of the company’s name. Everything seems to be working out well but overnight, tragedy hits and the next day, the company’s leadership and employeesare left to pick up the pieces.
That scenario is actually more common than you might think, says Stathis Stasis of EuroLife. That’s because many businesses rely primarily by one person for their success, under the common assumption that the business will be passed on to other family members after retirement. But that’s not always the case – other family members may not be willing or able to handle the functioning of the business, and some businesses require the company’s founder for maintaining client relationships and managing complex stakeholder interests. As a result, the value of that business can shrivel overnight – and trying to sell that business at fire sale prices could result in a much lower sale price than expected.
For that reason, it’s best to consider life insurance for business continuation. It’s the best way to protect people you love and work with, ensure their future, and protect what you’ve built over a lifetime of hard work. You will be ensuring not just the continuity of your business, but also the continuity of all the individuals who rely on your business for their livelihood.