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Being a business owner you probably have a ton of different insurance policies such as disability, medical, dental, equipment protection and all of your own personal policies such as your homeowners, vehicle coverage and more. None of these policies however actually secure the life of your business. Below are a couple types of policies that help protect the actual life of your business, recently found on OpenForum.

Say you have a multi-owner company and an agreement stating that when one or more owners dies the remaining owners buy their shares of the company. This transaction of course requires that the remaining share holders have cash in order to buy out the shares, and most of us don’t have that kind of money just lying around.

Enter in life insurance to the rescue. There are many ways to structure life insurance to fund buy-sell agreement terms, depending on the nature of the business and ownership structure. One of the more effective methods is for every owner to be insured for the approximate value of their shares.

Your company I’m sure has a few or more “key employees”, the kind that you rely on for just about everything important related to your company. You don’t know what you would do without these key employees, so what if something happens to one of them? You can obtain a type of policy that insures the loss of your key employees, it helps you get by until a replacement for that employee is found. You hold the policy, pay the premiums and are the sole beneficiary to the policy.