You may be surprised that life insurance has significant benefits for business owners. This comes in the form of life insurance offered to employees as a competitive benefit and life insurance for owners as a business continuation tool. Your agent at Stanley Insurance Group can answer your questions about the benefits of life insurance for companies and individuals in Hilliard, OH. In the meantime, here is a brief overview.
Benefits of Life Insurance for Businesses
Employees prefer companies with great benefits, so offering life insurance can give owners a competitive edge in the job market. Talk to your agent regarding how to set this up for your employees. It also provides a tax break since it’s usually deducted from pre-tax income.
As a business continuation tool, owners can plan a buy/sell agreement. This agreement allows partners or co-owners to purchase life insurance on each other. If one of the partners or owners dies, the remaining owner or partner receives their share of the business. Meanwhile, the deceased owner’s family gets the proceeds of the life insurance policy.
The company can also purchase key man life insurance. In this case, if a key employee passes away, the company receives the life insurance proceeds to help hire a new person to take over the key role.
Even if you are a sole proprietor, life insurance can benefit your business. The policy is a business continuation planning tool. If the sole proprietor dies, life insurance proceeds keep the business up and running until it can be sold or the sole proprietor is replaced. This can keep the income stream flowing for the proprietor’s dependents and employees.
Your Life Insurance Agents in Ohio
To schedule an appointment to discuss how life insurance can benefit your business in Hilliard OH, contact Stanley Insurance Group today.