Life Insurance for Business Professionals

Practice Purchase

When you purchase a practice or do a start­up, you most likely will get a loan from a bank or a lender. Usually, the institution will require that you have life insurance (collateral) to cover the entire loan in case of your early demise should the loan amount still be due.

Partnership

When forming a partnership, a buy­sell agreement is drafted by an attorney and should be updated annually as the value of the practice increases. This agreement, amongst other things, places a value on the practice to establish the cost to a partner to buy their share upon the death of either partner. The life insurance proceeds will go to the deceased heirs and therefore cover the cost to purchase their share of the partnership.

Key Man Insurance

As the term implies, life insurance can be used to protect yourself in the case of an untimely event to a partner, associate, employee or any insurable interest.

Real Estate

Some of you may have the opportunity to purchase the property where your practice is located. If this is the case, life insurance can cover the cost of your mortgage. This will allow your estate to cover its liabilities.