Do You and or Your Business Need Life Insurance? Yes, is Usually The Answer
Business life insurance is often used for buy sell agreements as well as other related bylaws or operating agreement provisions. Business life insurance can support your business financially if something happens to you, your other members or partners. There are several different types of life insurance that fall within the umbrella term of ‘business life insurance’ and provide the coverage you or your operating entity need to protect the business as well as your heirs. As to the amount of life insurance, many planners recommend an amount 10 times or more than your current income or an amount that comports with the business valuation. this can be reviewed, assessed and adjusted annually as needed. Life insurance rates are influenced by a number of factors to include your age and health, which has the biggest impact on the policy and premium costs. To protect your business and interest within same with life insurance, consider the bylaws or operating agreement terms, conditions and provisions to decide as to paying the death benefit to chosen beneficiaries, such as the entity, other LLC members, or your family, where your loved ones may also count on the death benefit to support them, and where you can choose multiple beneficiaries as needed. Contact al of your trusted advisers to include your attorney to address this business matter.
DiMedio Law is a New Jersey Business & Real Estate law firm whose practice includes business services and exit planning matters. Contact us at [email protected] or call us at 856-428-5577.