Who Minds The Store?

Some of you guys are business owners. You’ve worked hard to build what you have and are still working hard to maintain it. BUT...what happens if you become unable to work? Are you protected? How do you support your family in the event of your inability to go to work?  


These questions plague every business owner and keep us awake at night. Here are a few tips on how to protect your livelihood: 


1.  Have a buy-sell agreement: If you have a business partner, you need a buy-sell agreement. It’s easy and inexpensive to have an attorney to set it up for you. You don’t want to be in a position where you are in business with your business partner’s spouse. A buy-sell agreement eliminates the possibility of you losing your business in the event of the death or disability of your business partner.   One of the most common ways to fund the agreement  is with life insurance. Life insurance provides a way for you to buy out your business partners next-of-kin so you can continue life as usual, in the event of a loss, and vice versa.

2. Disability insurance: Disability insurance is an often overlooked need that can really help if you become disabled or unable to work. This type of insurance can work in several ways. You can purchase long or short term disability insurance or you can purchase life insurance with an accelerated death benefit to use specifically in the event of your inability to work due to critical, terminal, or chronic illness. Either way, you would be covered in the event you became sick.   

3. A 401k or long-term investment: There are advantages to having a 401k set up for your employees. There are tax implications that are advantageous to the business owner, and it’s a benefit to the employee. It can also help attract good prospective employees who are interested in retirement benefits. Another good long term investment is an annuity, either for yourself or your employees. An annuity is a solid, secure low-risk investment. They are backed by insurance companies, not the federal government. They aren’t risky, and are a good add-on to your portfolio. 


If you’d like to know more, please feel free to contact me at your convenience at elainejacksonagency@gmail.com or call 865-482-7354.