The owner of a business holds the most important position in a company and his or her status must be protected with business owner life insurance. If that principal business member dies, the life insurance can keep a company from bankruptcy. By owning a business owner life insurance policy, you can protect your employees, keep your business running, and ensure your family is provided for.

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To receive business owner life insurance, a life insurance broker or company will ask the applicant to pass a medical exam. Often they are looking for signs of drug use, alcohol abuse, high cholesterol, and high blood pressure. They will want a complete family health history to see if you are prone to any threatening illnesses such as heart disease, cancer, diabetes, or conditions such as MS, HIV, or Parkinson’s disease.

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The better your health, the more likely you are to receive low rates and excellent coverage. Therefore, it pays to keep yourself in shape and make sure you are in great form for the blood and urine tests. Avoiding fatty, sugary meals or snacks a few days before the test, increasing water intake, and avoiding alcohol will help provide the medical staff with good blood samples. Usually, they require blood tests to be “fasting” samples, meaning you have not eaten or drank anything other than water for the past twelve hours.

When purchasing a business owner life insurace policy (key person life insurance), insurance brokers recommend purchasing a policy that is equal to fifteen times the employee’s yearly salary. If you earn $100,000 per year, you will want a $1,500,000 policy. It sounds expensive, but if anything does happen to you, the company will be able to thrive once they have grieved.

With key person term life insurance, the company pays the monthly premium and is named the beneficiary. If you die, the company receives the value of the life insurance policy. This ensures the company has the financial means to pay off debtors, search for a new owner (or owners), and/or provide the owner’s family with additional monetary benefits to help them remain financially stable.

While business owner life insurance is necessary, it is also an insurance that can be denied to you. There is no guarantee you will qualify. Search for rates and coverage with a number of companies. It will increase your chances of receiving coverage. It definitely pays to be in good health and apply for business owner life insurance early in life whenever possible!

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