Anyone with a financial commitment, family obligation, small business, or a desire to leave a legacy for their children, grandchildren, or charity should consider buying life insurance.
In fact, major life events are natural times to consider life insurance or to re-evaluate any life insurance coverage you may already have.
The profiles below highlight a few of the many times in life when purchasing life insurance, or revisiting your current policy, makes sense. Look to a financial professional for other ideas on how life insurance can help give you and your loved ones added peace of mind.
As a business owner, you have a lot to protect—your business, your employees, and your family. Life insurance is often purchased for personal financial protection, but can also help with three key areas of business planning:
Life insurance can help protect your business in the event of a loss of a partner or other key talent, and can help facilitate the exchange of business ownership in the event of retirement, disability, or death.
The agreement should include how payment will be made for the business interest. Options include cash payments from savings, borrowing, an installment sale, or life and/or disability income1 insurance.
If you use life and/or disability income1 insurance to fund the obligations under the arrangement, you can be assured that cash will be available when you need it. A buy-sell arrangement, funded with insurance, may be the most important step you take in securing your financial future and the continued operation of your businessKey Employee Protection A key employee is one whose talents, managerial skills, and experience your business depends on. When you lose a key employee because of disability or death, the financial impact to your business can be devastating. You may lose income, credit, and goodwill, and incur costs to replace the employee. But you can protect your business from such a loss through life or disability income1 insurance. With these policies in place, upon a key employee’s death or disability, the life insurance proceeds or disability income benefits will be paid to the business. Those funds can be used to help meet debt obligations, offset lost sales, or cover the expenses associated with recruiting, hiring, and training replacement personnel.
Your Prudential licensed financial professional is prepared to work with you and your tax and legal advisors to help create the programs that are appropriate for your company, your employees, your family, and you.