Tuesday, February 20, 2018

Business Insurance Update from CNC Insurance Associates, " The Biology of Business Life Insurance" 2-20-18

The word "Biology" is the study of living organisms  physiology, origins, and behavior. I am taking some blogosphere liberty by using it in the same sentence with business life insurance. Life insurance when used correctly, can "come alive" and help a business to thrive. No, I have not lost it, so let me explain.

Life insurance can be used in a business to protect a key person and the revenue they bring to the business. If the key person dies, so could the income they make for the business. A  life insurance policy owned by the business can keep the revenue "alive" even if the key person is no longer living.

Life insurance can help a business perpetuate to new owners. One of the major obstacles in a business perpetuation is funding buy sell agreements or contractual agreements to purchase. Properly constructed, life insurance can help facilitate these arrangements and keep the business "alive" for future owners.

Life insurance can help retain valuable employees. If a business owner wants to keep the competitors away from stealing their top people, use of a life policy might do the trick. It can be used to reward top talent. It has to be structured right but it can certainly make the valuable employee feel "alive" with enthusiasm to stay and not look elsewhere.

These are just a few of the many uses of  life insurance. As you can see the  biology of the "life" in business life insurance is great for a company like yours,  and a great tool for success. Until next time be careful out there and know your risks.

G. Kevin Nemith  CEO,  CNC Insurance Assoc. / Hilb Group