Yesterday I attended a networking meeting where the keynote address was given by a financial planner by the name of Matt MacWilliams (find him at www.amesweinheimer.com).  His talk focused on the importance of life insurance.  This is of particular importance for those of you who are in partnerships. 

First – be sure that if you are in a partnership that there is a written agreement as to what should happen in the event of a partner’s death.  Will the business go to the other partner?  Will the surviving partner need to buy the other half from the deceased’s family?  Find a lawyer and work this out.

Secondly – look into how insurance can help in these situations.  Insurance can be purchased that would provide the funds upon the death of a partner for the other partner to purchase the business from the deceased’s family.  With the agreement in place and the insurance purchased everyone is taken care of and there are no unanswered questions.  In addition, know that insurance can be purchased that will cover the costs of hiring and retraining should a key employee pass away as well as cover losses suffered through the loss of this employee.

Learn more from expert, Matt MacWilliams by reading these two documents:

Key Employee Insurance

Buy Sell Agreement