If you die or become ill, your family would face three alternatives:
- They could continue the business, requiring family members to have the ability and experience to run your business, sufficient cash after debts are paid and the ability to retain your customers.
- They could liquidate the business. A forced sale attracts bargain-hunters and with “goodwill” gone, the value of the business may be drastically reduced – by as much as 40 to 90 per cent.
- They could sell as a going concern. However, finding a qualified buyer may be difficult; the cash for purchase may not be readily available and the agreement on a fair price may be difficult to reach.
Alternatively, you could protect your business and family if you chose business life, disability and critical illness insurance. These products could help you and your family carry out your plans for the business if you were to become critically ill or die – for example, life insurance can provide funds to buy the business under a purchase agreement, and disability insurance can provide income if you become disabled. Critical illness insurance can help you pay off debts, stabilize your credit position, offer cash values or loan options or establish a fund for personal income at retirement, independent of the business.
I can offer you an array of life, disability and critical illness insurance products to suit your needs. Please call me and I can help you develop a solution that best fits your family and business needs.