When it comes to protecting your family, life insurance can help. It provides a payment to your family after your death. However, it can also do much more. What are some of the other benefits of your coverage?
You determine how your heirs use your life insurance to some degree. In some ways, it can also help with your business. Some people use it as a way to continue their business after their death.
How to Use Your Life Insurance Policy
Life insurance pays a death benefit to the person or entity you name on the policy. Generally speaking, you can give these funds to anyone you wish.
Life insurance does not have to be a part of a will. Some people use the funds from a life insurance policy to establish a trust. The trust has rules and requirements to follow. Trusts also work well to protect your efforts to get the money to the right place. Unlike a will, they give you more ability to decide what happens with your assets. In this case, you can establish the trust to use the proceeds from your will to manage and maintain your business.
Does Your Business Need Support?
Certain people are the heart and soul of their company. If something were to go wrong with the owner, it would be hard for the company to go on. Life insurance proceeds can help when this occurs. You can use them to help continue your business. This may include using the funds to find a replacement or to pay off business debt.
If there is a second party who owns your business, you may wish to use the proceeds from a policy like this to buy out that party. Your heirs can manage this process for you. It is important to know this about your policy, though. The person you name can decide how to use the funds from the policy. Listing a beneficiary like this gives this party the right to use the funds in any way he or she decides to. If you hope to have more control over the funds, work with your estate planner. The establishment of a trust can help at this time.
Life insurance funds can do many things. Work with your agent at 716-634-7070 to create a plan to address your unique needs. You may find this is a powerful source of funds when you cannot be there to manage your company any longer.
Also Read: Using Life Insurance as an Investment Tool