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Business
Continuation Planning |
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As
businesses are generally owned by one or more individuals, business
continuation planning addresses what is to be done in the event
of a business owner's death, disability, voluntary termination,
or bankruptcy. Without an agreement, the death of a business
owner could result in the termination of the business or cause
a surviving spouse to become a partner or co-owner with the
existing business owners. Generally this is not desirable.
A
Buy/Sell agreement is drafted by an attorney to address
these and other possible issues. Life and disability insurance
are used in the planning process to provide the funding to guarantee
the financial aspects of the agreement. |
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Key
Person Life or Disability |
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If
the death or disability of a key executive would cause financial
harm to your business, key person insurance coverage may be
necessary to indemnify your company against an untimely death
or disability. For example, if certain client relationships
were jeopardized or banking lines of credit were called into
question as a result of a death, corporate profits may suffer.
Key person life or disability insurance could be used to protect
a company from such an event. |
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