Business Continuation Planning with Life Insurance
Business continuation planning uses life insurance to help a company keep operating if an owner or key person passes away.
How this coverage works
It is the umbrella over key person coverage, buy-sell funding, and loan protection. The question it asks is what the business needs in the ninety days after a death, and where that money comes from.
Payroll does not pause. Lenders get nervous. Customers ask questions. Insurance is what buys the room to answer them.
Who this coverage may be good for
- Family businesses.
- Partnerships.
- Small businesses where one person’s absence would be felt immediately.
What to consider before choosing it
- Coverage should match the actual business risk rather than a formula.
- A succession plan without funding is a document, not a plan.
- Review it whenever ownership, debt, or key personnel change.
Common questions
Where do we start?
With the ninety day question. What does the business owe, what does it need to keep paying, and who is not coming back. The coverage falls out of the answers.
Do we need all of these pieces?
Rarely all of them. Most businesses need one or two. Buying the whole menu is how this gets a bad name.
Who else should be involved?
Your attorney and your accountant, from the beginning. I coordinate with them. I do not replace them.
Coverage availability, benefits, riders, and underwriting requirements vary by carrier, product, state, and individual eligibility. This page is for general educational purposes and is not a guarantee of coverage.