You have worked hard to grow your business. You have invested your time, money and talent to create a successful company that you may wish to pass to your children one day. Perhaps you have a business partner, or several partners? You may have employees. The common factor that unites all of your family, partners and staff is their dependence on the continuation of your business even if the unthinkable should happen and you are no longer at the helm.

Life insurance pays out a lump-sum benefit to the person or persons named as the beneficiary by the policy-holder in the event of the policy-holder’s death. For a small monthly payment, a business owner can obtain the peace of mind that comes from knowing the company is protected in the event of his or her death. Level term life insurance is one of the most economical choices and is available from a variety of vendors. Terms vary from five to thirty years, and the premium is guaranteed to remain the same over the life of the term, ensuring the business owner will pay the same amount every month.

By creating a lump-sum payment, life insurance protects not only your loved ones, but also your business partners and staff as well. Many small companies have an agreement between the partners that if one should pass away, the others will buy his or her share from the heirs. Few people have large sums lying about to make such a purchase a possibility. Life insurance can be set up to cover that cost, offering your loved ones and your partners practical support at a difficult time. The lump sum may also help bridge the gap between the sudden loss and the time it takes to get the business up and running again.

Another key advantage of having a policy is the benefits it can bring in attracting and retaining top talent in today’s competitive market. It may be possible to save money by buying into a group policy and extending life insurance cover to your employees as part of their benefits package. Offering benefits such as life insurance can be a sweetener that draws in the highly qualified staff you need to make your business a success. It is even possible to create a life insurance policy that covers your interests in the event of the loss of one of your key employees. Losing a highly skilled staff member may mean an expensive search or necessitate making heavy investments in the training of existing staff to take over their job. Key-person life insurance can help cover the sudden loss of a difficult-to-replace staff member and provide peace of mind that integral positions in the company are covered.

Life insurance is a necessity for the small-business owner. While you may be gone, the business, complete with debts, operating costs and obligations remains. Without life insurance, your business partners may face having to shut the company down, your staff will lose their employment, and your loved ones may be saddled with debts that could lead, in the worst cases, to bankruptcy. A life insurance policy can help negotiate that difficult gap between their devastating loss and a re-structuring of the business that allows it to continue on after you’re gone.