You spend and invest your entire life in creating a business and you do this to provide your family with everything they want and also because you love doing what you do. But due to a sudden twist of events, if something happens to you, have you ever thought about what will happen to all this? This is where your life insurance will protect everything that you have built. Life insurance companies have seen that people who have backup plans like the spouse, or a family member will take over but, in most cases, they are not capable enough. They also think that their death won’t affect their business at all, or they just think that someone will buy their business. As easy as these options sound, they aren’t that simple. So, this is how you can save the future of your business through life insurance.
Key Person
This is a particular type of life insurance policy that business or business owners buy where the policy is bought on the life of this one person or key person. If this key person dies, then the insurance company pays a certain amount to the company to cope with the monetary loss that might have been caused to the company. This may cover things like salary or sales.
A Buy-Sell Agreement
This policy is a way to ensure that your family has a safe future and can survive for a while, till the time they are stable enough to pick themselves up. In this policy, if the business has multiple partners then on the death of any of them the rest of the partners can buy the company at the prices that were decided initially when the policy was made. This money goes to the deceased’s family members.
Personal Life Insurance
This might not directly protect your business, but it protects your family by giving them the money of your life insurance. Now it depends on them how they want to spend this money. If you have any debts, then they can use this money to overcome them and start fresh.
To Conclude
Insurance is the best way to protect the unseen future of your family, business and you. If you don’t have it then you are risking everything that you have worked for and loved. No one would want to see their efforts go to waste. Insurance company Dubai will give you a detailed version of the same and guide you through it.