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Business life insurance

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Business life insurance is an important tool to secure and protect the future of a business. Business life insurance is thus an important cog in the wheel of fortune of every business that will help in situations where a business has to recover from damages or brace up for larger expenses.

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Scenarios covered in business life insurance

Several different scenarios are covered by business life insurance. Small business life insurance, for example, makes sure that the business survives the loss of key persons who were critical to the success of the company. This is because small companies and startups are extremely dependent on a few individuals. Therefore loss of a key person at an important phase could inflict substantial damage that has to be withstood by the business.

Business owned life insurance also covers scenarios where employee incentives, deferred bonuses and retirement plans have to be offered by the company to various individuals. Certain employees need to be retained or attracted by the company to sustain the life of the business and expand it. Therefore additional funds are required to motivate such employees and to reward them for their past successes.

Business life insurance also proves significant in case of family owned business. There could be massive estate taxes levied at the demise of an individual. Sometimes this could leave the heirs with no option but to sell the business. Business life insurance could help in preventing such scenarios.

Business life insurance can also be very important when the business has liabilities but is expected to generate revenues soon. If the business owner meets with accidental death, the liabilities could pass on to others, including heirs of the business owner. To avoid such circumstances, a business life insurance can be purchased to protect co-owners, partners and financiers of a business too.

Benefits offered by business life insurance

Several benefits are offered by business life insurance. While it can be considered a small part of the investment required to grow and expand a business, it could turn out to be a pillar of strength when the business has to pass through critical times. There is too much at stake in most businesses to risk everything on the vagaries of destiny. A business could lose its proprietor, key personnel or employee, or motivating partner. A business could also face massive losses owing to unforeseen circumstances that could rock the boat. The business life insurance coverage could be the lifeboat for such situations, especially for small businesses which can be easily toppled over by adversities and donít have separate funds for business continuation.

The business life insurance is an excellent business continuation plan where the premiums could depend on the present health of the company and the future prospects. Business life insurance quotes can be requested even by a self employed person who wishes to have some insurance coverage to fall back on in times of adversity. The premium could depend on the coverage assured and the risk involved for a particular business.

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December 31, 1969


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