For successful small companies, the death of a business partner can yield a heavy emotional and financial toll. Ryan Hanley writes on Small Business Trends that without life insurance, the remaining partner may find they not longer have the resources to keep the company afloat.
"After a lengthy, emotional meeting, you find out your business partner had racked up mountains of personal debt financing some commercial property deals on the side that didn’t pan out," he writes, adding that a spouse could be saddled with debt and demanding the business to be sold to pay it off. "Now a 50 percent shareholder in the business, the spouse has the legal right to make such demands. Now you either have to spend a boatload of money to buy out the spouse or sell the business you’ve worked 20 years building."
Learning from this, Hanley said life insurance is worth having to save a headache in the future. With the right insurance, small business owners can protect themselves, their business, their partner and their family from any malady that may occur later on.
LifeInsurance.org said "key-man" life insurance, or a policy taken out by partners on each other to protect the business, could be a good way for businesses of any size to protect their investment and future.