Lisa Zeiderman, Esq., CDFA, CFL, a Managing Partner at Miller Zeiderman, LLP, specializes in matrimonial and family law in New York. She emphasizes the importance of business life insurance for business owners to protect their companies during times of transition, such as marriage, divorce, or death.
Different types of life insurance for businesses include key man insurance, buy-sell agreement insurance, business loan protection insurance, and group life insurance for employees. These policies provide financial stability and continuity for businesses in the event of unexpected events.
Key man insurance can be used to protect the value of a business interest, while buy-sell agreement insurance ensures a smooth transfer of ownership in the event of an owner’s death or disability. Business loan protection insurance prevents default on loans in case of the owner’s death.
Group life insurance for employees offers financial support to the family of an employee who passes away, while also making the company more appealing to prospective employees. Business life insurance premiums may be tax deductible and proceeds are generally not taxed.
Common misconceptions about business life insurance include the belief that it is the same as personal life insurance, cost-prohibitive, only necessary for the business owner, and only provides death benefits. However, business life insurance can benefit all key players in a company, provide coverage for disability or retirement, and is suitable for small businesses as well.
When looking for business life insurance, it is recommended to consult with an insurance broker who can tailor a policy to the specific needs of the business. Financial advisors or attorneys can provide recommendations for insurance professionals to work with. The goal is to protect the hard work that went into building a successful business.
