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.

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, 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 you are not transferring your business upon death to all of your children, are there enough non-business assets in your estate to transfer wealth equitably? Would you want to treat all your children equitably? Sometimes life insurance is used to help equalize the estate so all beneficiaries get the same value even if assets aren’t divided equally.

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

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