A partner in the business died, and now his surviving wife is asking for his shares in the business to be liquidated. We really would like to give his wife his share of the business, but his money is tied up in inventory and the business cannot afford to sell the inventory at a loss.
As a business owner, you can use life insurance to protect your business if you die or become disabled, or if one of your key employees dies or gets disabled. In the scenario above, imagine if that partner who died had his other partners as his beneficiaries in a life insurance plan? Those other partners could have bought back his shares thereby giving them control of the business, while giving the surviving wife his share of the business in cash. Win-win? Definitely.
Protect your business and start your plan today!