YOUR BUSINESS: You’re the sole owner of a construction firm that employs five other people. You’ve seen steady growth since you started your business and hope to hand it down to your children one day. But what if you were to pass away without a proper succession plan? Would your family be expected to continue the business without you? Would there be enough cash flow for them to manage your staff? Or would your savings be tied up in funeral expenses?

YOUR PLAN: The death benefit paid to your loved ones can be leveraged in whatever way fits their needs. While most people use the proceeds to cover death costs, bills, or childcare, your loved ones can put any extra funds towards the business, whether that’s to pay rent, keep things running, or even bring on a manager to handle day-to-day activities. This allows your partner to focus on caring for your children while benefiting from the income of the business you worked so hard to build.

YOUR BUSINESS: You co-own a successful marketing agency with three other business partners. Unfortunately, you pass away suddenly and your share of the firm is inherited by your family. They’re open to selling the shares back, but your partners argue the business is worth much less without your clients and expertise. Both parties are unable to agree on a fair purchase price and negotiations quickly become hostile.

YOUR PLAN: Losing a loved one is hard enough. The last thing your family needs is the added stress of a costly and contentious lawsuit. To avoid this scenario, you and your business partners can take out Life Insurance policies on each other. If you pass away, they’ll receive a death benefit, allowing them to to comfortably buy out your shares and maintain full ownership without burying your family in legal fees. For maximum protection, your death benefit should be equal to the value of your contributions as a co-owner, as well as reduced profit, increased expenses, and any additional costs associated with getting the company back on track.

YOUR BUSINESS: You and your business partner run an accounting firm, but have taken out significant loans to finance its expansion. Unexpectedly, your partner passes away, leaving half of the firm—and the debt— to their heirs. They decide to sell the business to cover their expenses and the estate taxes. You don’t have enough to buy back your partner’s share and due to market conditions, your firm sells below its actual value, resulting in minimal proceeds to recover your losses and support your own household.

YOUR PLAN: You and your partner can take out Life Insurance policies on each other with a death benefit equal to the remaining debt and the combined value of your shares. Following your partner’s death, the payout can be used to settle outstanding loans and taxes. This way, the heirs will receive their rightful inheritance without having to shut down the business and you can continue operations seamlessly, providing stability for your family and the company.