Life Insurance Basics for Small Business Owners

When we talk about business finances, we usually talk about revenue and expenses. But protecting the business owner is just as important. Life insurance for entrepreneurs isn’t just about protecting your family—it’s about protecting the business you built.

Key types to consider:

• Term Life Insurance: Provides coverage for a specific period (e.g., 20 years). It is generally affordable and can cover business debts if something happens to you.

• Key Person Insurance: If you have a business partner or a crucial employee, this insurance protects the company if that key person passes away.

• Buy-Sell Agreements: This is funded by life insurance and ensures that if one partner passes away, the other partner has the funds to buy their share of the business.

Paying for insurance premiums is a necessary business consideration. To see if your current budget can handle these premiums, you should strictly follow a monthly financial review. Learn more in our article: What You Should Review Every Month in QuickBooks.