Business Needs for Insurance

There are various ways in which life insurance can safeguard your company after a principal employee dies or when there is a change in ownership.

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Business owner life insurance

If you’re a business owner, it’s important to provide protection for your family in the event of your death. When determining your life insurance needs, be sure to consider both replacing the income your family depends on, and also providing funds to pay off business-related liabilities. Your Financial Advisor can help you determine how much life insurance coverage you may need.

Key person insurance

If your company’s success relies heavily on the contribution of specific individuals, you may want to consider purchasing key person insurance. You can use the proceeds from this type of business insurance to help offset the loss of sales your business would experience or expenses it may incur if a key person dies.

Selling a business

If the sale is in installments, you should make sure the buyer has sufficient life insurance with the proceeds pledged to cover the remaining purchase balance if the buyer dies prior to completion of the sale.

Transferring the business to a family member

If your business will not be transferred equally to all of your children upon your death, are there enough non-business assets in your estate to transfer wealth equitably? Do you intend to treat all your children equitably? Sometimes life insurance is used to help equalize the estate so all beneficiaries get the same value when assets aren’t divided evenly.

If you intend to leave your business equally to both involved and uninvolved children, there are additional ways to structure insurance to give them flexibility. Consult your attorney on which structure best fits your situation.

Insurance products are offered through non-bank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance companies