Business Life Insurance Pennsylvania PA
Reader’s Question:
I run a sole proprietorship business here in Pennsylvania. If I die prematurely, the business will collapse. Is there a special type of life insurance that will protect my business?
Donald
Pittsburgh, PA
Well, Donald, life insurance is not just for protection of individuals and families, it can also be used to protect your business or businesses. Like humans, businesses do have health, too, and therefore also need to be protected. A lot of businesses have closed up because they lacked the cash they needed at the time they needed it most. Had they been injected with the needed cash, their business would have survived.
Generally, businesses have existing credit lines with banks, so they can get a quick and fast loan when money is needed. However, there will be instances when the banks won’t lend them anymore for some reason or another. Now, as you have said, your business is a sole proprietorship. If you pass away, your family may be at a big risk as your creditors can claim your business and personal assets precisely because it is a sole proprietorship.
If this is your only source of income, it is best if you have a talk with your life insurance agent in Pennsylvania on how you can have a good contingency plan for your business. There are now policies made for businessmen like you.
Tags: insurance, insurance advice, life insurance
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