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Do You Need a Life Insurance Policy for You or Key Employees?

Ensure company longevity with life insurance policies.

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This story appears in the September 2006 issue of Entrepreneur. Subscribe »

What would the financial impact on your company be if you or one of your key employees died? can soften the economic blow and provide the necessary cash to stay in during the tran-sition, says Larry Singer, an with New Jersey Life & Casualty Associates in Livingston.

If you've guaranteed a business loan, it's likely that the lender will call the loan on your , leaving your successors without critical working capital. "A business owner has the obligation to protect the ongoing viability of the business," says Singer. Not only should you have enough life insurance to cover company , but you should also have coverage to replace lost income and fund the costs of replacing yourself and key staffers.

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