Small Business Life Insurance Needs

Have You Given Any Thought To Small Business Life Insurance?

What Type Of Business Do You Own?

Is your business a Sole Proprietorship?

Are you part of a business Partnership?

Is your business an S Corporation?

What about a C Corporation? Is this how you incorporated?

Have you taken advantage of the new Limited Liability Company laws?

How about Key Employees? Do you have any employees that you can categorize them as Key Employees?

Small business life insurance as it applies to each type of business is different in many ways but there are also many similar features as well. What we are discussing here is not group life insurance but more specifically life insurance as it applies to the owners of each business and life insurance for the key employees. Let us take a look at each type of business and how life insurance could go a long way in protecting the business itself as well as the heirs of a deceased business owner.

The Sole Proprietorship.

Because the owner of a sole proprietorship and the business itself is considered one and the same one may think that the need for small business life insurance is limited. Nothing could be further from the truth. We put in a lot of time and effort building a business that has to be dissolved at our death. We do want to have this business transferred to a member of the family when we die. How can this be done?

The estate of the sole proprietor can sell the assets of the business upon his or her death. A small business life insurance policy can be bought during the lifetime of the owner the proceeds of which would be used to buy the business. A buy sell agreement, which would be binding, would determine the terms and the amount to be paid for the business.

Let us assume the proprietor is married and has a son or daughter who is interested in taking over the business upon his death. This young person has spent a lot of time learning the intricacies of operating the business from his or her father. So dad decides he wants to transfer this business to this child upon his death. He has a buy sell agreement drawn up by an attorney that would fulfill his desires. This agreement is funded buy a small business life insurance policy specially bought for that purpose.

The proprietors wife is not particularly interested in the business but if the business owner dies before her she will still need income. The proprietor dies. The proceeds of the small business life insurance policy is used to purchase the business from the estate and the wife has full value in cash. She can use this money to purchase an annuity that would pay her an income for a certain number of years or for a lifetime. Of course this decision will depend on the amount of money we are talking about here.

The Partnership.

The use of small business life insurance in a partnership is very simple and straightforward. The ownership of this partnership is in the hands of three partners. For the sake of easy explanation let us assume that that these partners own equal shares. A buy sell agreement would be set up that would state that the partnership would buy the shares of a deceased partner from his heirs. The buy sell agreement would be binding. The heirs cannot decide they don’t want to sell. The partnership would buy a small business life insurance policy on the lives of each of the partners in the amount of the value of their shares. The proceeds would be used to fund the purchase. In some cases the policies can be owned by the partners themselves. The results are the same.

The Corporations.

Small business life insurance for c corporations, s corporations are limited liability companies is very similar to that of the partnership. The corporation usually owns the policies on the lives of the principals. Upon the death of a stockholder the corporation buys the stock from the heirs of the deceased. A small business life insurance policy is the least expensive way to fund the buy sell agreement. It is recommended that the insurance is updated on a regular basis and that the buy sell agreement is reviewed and updated from time to time…as it is binding.

Key Employee Life Insurance.

What state would your business be in if a key employee died? Have you given this any thought? In my 40 years in the life insurance business I have seen many interesting situations. Some businesses had no key employee life insurance on their valuable employees…much to their detriment. Others were prepared and things continued on smoothly after the death of the key employee. It is recommended that if a business has a very valuable key employee that they buy a small business life insurance policy on the life of that employee equal to about 5 years of that employees income. Upon his or her beath the proceeds of the policy is paid to the business and used to help keep the business going while the company finds a capable replacement.

For more detail on Business Life Insurance go to: http://www.lifeinsurancehub.net

How To Combat Negative Feelings In Your Business Life

Do you struggle with negative feelings? Honestly, who does not? These critical times are marked by economic uncertainty and hardship, volatile violence and careless injustice. It is hardly surprising that countless people today are troubled by overwhelming sadness, excessive guilt and a sense of personal worthlessness.

These negative feelings can be toxic. They may undermine our confidence, paralyse our reasoning ability and steal our joy. When we feel discouraged, we are weakened. We need our energy and power in order to keep on going in this burdened world. It is vital to keep negative feelings under control. (Note however, those who suffer with long-term or chronic depression may need to consult a qualified doctor).

There are three ways that may help you combat negative feelings.

  1. You need to be aware of those who are genuinely interested in you. The people who care for you, love you and value you highly. These are the people in your life who honestly have your best interests at heart and are understanding to your feelings. It is a comfort knowing that these are individuals who have come to know and respect you, and despite your flaws and mistakes, they are still sincerely concerned about your welfare.
  2. You need to surround yourself with a healthy, positive support group. Negative feelings cannot be dispelled if you surround yourself with depressive or cynical people. People who haven’t set clear goals and take action to achieve them, often have too much idle time which gives rise to negative thinking and inaction. These individuals won’t build you up, they will tear you down. Who you choose to be friends with will have a positive or a negative impact on your life both at home and in your business.
  3. You need hope or something to look forward to. What is your focus? Perhaps you are in a situation or environment that is conducive to encouraging negative feelings. You may be stuck in a job you don’t like with an unappreciative boss you have to answer to. You may be in a highly demanding corporate job, which robs your quality time from you and your loved ones. You may be overwhelmed by debt, concerned about your financial affairs and the security of your family. You may have been laid off your job or forced to take early retirement. Alternatively you may be forced to work longer before retiring and you are tired and seeking something that will give you better satisfaction. You may be a mother experiencing guilt at having to return to work after maternity leave. Perhaps you are anxious at the thought of leaving your children in a stranger’s care or the rising costs of childcare. Let’s face it…there are numerous factors in life, both personally and in business that can cause negative feelings. Do not panic. There are solutions. There are always choices even if they don’t seem abundantly clear at first. Education is important if you are going to stay ahead of the curve and create a secure nest egg for you and your family. Times are changing and only the well-informed individuals will be protected from the negative influences that abound today.

Don’t be a victim. Take action in combatting negative feelings and securing your future both in your personal and business life. What is your outlook? Don’t focus on what has gone wrong. Focus on what to do next. Spend your energy on moving forward and finding the solution. Securing your financial future in today’s uncertain economy is just one of the many steps you can take in ensuring a better life for you and your loved ones now and in the future. Act without delay. Secure Retirement Funds.

Tips on How to Keep Fit in a Busy Life

Staying fit can be really hard when you have a busy lifestyle. Because being in shape and healthy is important for your future, you need to learn how to include healthy foods and activities into your schedule. Here are some tips on how to keep fit in a busy life.

Exercising regularly as well as eating the right kinds of foods for our bodies can significantly improve your health. To keep your body performing the way it should, you need to keep your body moving. For a long and healthy lifespan, we need to constantly be taking care of our mind, bones and muscles. It is sad to see older people so weak and suffering from ailments caused from improper treatment of their bodies during their lives.

It can be tough to find the time to do what it takes to have a healthy lifestyle. Most people are too busy with their work and families to find time to fit it in. If you try hard enough, you can find the time. Below are some tips on how to keep fit in a busy life.

1. Find Time- One of the most popular excuses for not working out or eating healthy is that there is not enough time in the day. If you take a look at your schedule for the week, you will most certainly be able to find at least a few gaps to fit in some exercising. The great thing is that you only need small time frames. A quick 20-30 minutes a day can go a long way in improving your health.

2. Find Motivation- Finding a way to motivate yourself can really help you get into the mood of working out and eating healthy. For some, motivation comes in the form of feeling better. For others, it might be to fit into an old pair of jeans that you have not been able to wear in a long time. Take some time to find something that motivates you and it will be much easier to learn how to keep fit in a busy life.

3. Have Fun- Doing the same old boring exercise routines will put you on the fast track to quitting. It is a good idea to always be trying out new activities. Instead of going to the gym, try participating in some sports activities or going swimming. Most of these activities can burn a lot of calories and you won’t even feel as though you are working out!

4. Make Each Minute Count- For some, they can spend a whole hour on an exercise bike or a treadmill while reading or watching TV comfortably. This is not the best way to exercise. Exercising should take you out of your comfort zone. It is better to work out hard for 30 minutes than to slowly walk on the treadmill for an hour.

5. Get A Check Up- Before you get into your new healthy lifestyle, it is a good idea to get a full check up from your doctor. This will let you know your limitations when you start to work out. You want to be able to push yourself without injuring yourself in the process. Also, take time to fully stretch before and after your workouts.

6. Plan Ahead For Healthy Meals- Eating healthy can be hard. Everywhere you go, there is fattening and unhealthy food right at your fingertips. The best way to make sure that you eat healthy is by planning your meals ahead of time. If you work, make your lunch in the morning or the night before so that you will not be tempted into going out to lunch and getting something to eat that you will regret.

It can be really hard trying to stay healthy in today’s society. With a little bit of hard work and knowledge, you can learn how to keep fit in a busy life.