Business Continuity With Insurance Planning
Insurance planning involves the purchase of appropriate protection in the accumulation objectives of a client’s living estate. Insurance planning for protection affects the achievement of accumulation objectives by:
1. Protecting against the loss of the earning potential of human capital because of death or disability and thus the elimination or reduction of income from work.
2. Protecting against the loss of personal and financial assets caused by a variety of property-related perils such as fire, theft, explosion and collision and/or legal liability.
3. Protecting against substantial expenses such as those caused by judgements and defense costs associated with legal liability, and
4. Increasing expenses to pay for insurance premiums and thereby reducing the amount of income available for accumulation objectives.
Successful owners are usually optimistic people, somewhat averse to dwelling on the more unpleasant aspects of business. Contemplating one’s demise certainly qualifies as an unpleasant aspect. However, it is important that you prepare well in advance to take care of business now – for it to continue successfully without you.
Ownership transition issues can be solved with insurance planning to prevent:
Business continuity planning includes the following:
Key person life insurance should be part of a business continuity strategy. It can provide the business with tax-free funds when needed to help:
In the long run, a successful business is one you can either sell for top dollar and exit in style, or one that can survive with your exit. We can work together to design and finalize the recommendations to help you to reach your objectives. Download more info about the Financial Confidence® business continuity solutions.