The proceeds of a life insurance policy are payable immediately, allowing heirs to take care of estate taxes, funeral costs, and other debts without having to hastily liquidate other assets, often at a fraction of their value. The proceeds are also not subject to income tax and can go directly to your beneficiaries without going through the probate process. If properly structured, your heirs also avoid paying estate taxes on this money. Besides taking care of family business life insurance helps grow and protect another kind of business. The one you own that provides your livelihood.
Life insurance can help in a number of ways.
This would ensure that the remaining owners in a business have the funds to buy the business interests of a deceased owner at a previously agreed upon price. In short, the owners get the business, the family gets the money. Courtesy of LIFE - the life and health insurance foundation for eduction. A non-profit organization. You'll find hundreds of free articles to help you stretcher your day and your budget.