If you’ve recently invested in your business, you need to invest in security as well. Insurance can protect your business – and family – from potential debt problems.  As a business owner you have to ask yourself: “If something happened to me, would my business be able to service its debts?”  “What if I became too sick or hurt and can’t work, would it be difficult for me to pay my debts?”

Here is an example of such a situation with “John the Business Owner”.

The Problem

John’s business has secured a $5 million commercial loan in order to finance an expansion of an existing facility. John realizes if he were to die or become disabled, the business would have a difficult time finishing the expansion and continuing to operate at a profitable level. He worries his wife would be left with a business that has no leadership and lower revenues. She would also have to manage the building expansion and ultimately pay off the large commercial loan.

The Solution

John secures a $5 million 10–Year Level Term life insurance policy, along with a $5 million Key–Person Disability Income insurance policy. If John were to die or become disabled, then the $5 million benefit could be used to repay the loan and provide his wife the opportunity to either find new leadership for the business, or sell the business at a fair price.

 *This blog is strictly the opinion of Michael A. Malleo and not those of