Life insurance important financial tool for small business owners

May 09, 2012

Business owners may need life insurance to protect themselves.

Small businesses need to protect their assets, and in the case of owners, they are their own best asset. For this reason, Forbes suggests that small companies should look into life insurance and other insurance products to protect their interests.

"Life insurance protects an individual against death," the Small Business Authority writes on Forbes. "If you have life insurance, the insurer pays a certain amount of money to a beneficiary upon your death."

The SBA said having life insurance allows business owners to know that not only will their business be protected upon their death, but their families will be protected as well.

Other types of suggested insurance to buy, according to the SBA, are business owners' insurance, property insurance, general liability insurance and commercial auto insurance. suggests that business owners should have life insurance policies on each other. This way, if one dies the other one can buy their share of the business and hopefully not have too many road bumps.

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