Family Insurance Planners Blog
If you are the sole owner of your business, what do you think your business is worth? What’s the value of your assets – land, buildings, inventory, accounts receivable, goodwill, profits, etc.? Question – could you sell the business for that figure?
The next question is what would your business be worth without you, in the event something happened to you? Who would buy the business, and at what price and, how long would it take your family to sell it if they needed to?
If you own your business with a partner, have you considered what you would do if something happens to your partner or vice versa? Do your heirs or your partner’s heirs want to continue the partnership?
All of these questions need to be considered if you are a business owner. Survivor planning, agreements and life insurance can go a long way in taking care of these “what ifs”.
Most people have no idea what this term (Latin for “by roots”) means. Per stirpes is a designation you can include when naming beneficiaries of life insurance policies, investments or your estate that stipulates how your assets should be transferred if any beneficiaries pass away before you. With a per stirpes designation, any amount that you leave for a beneficiary that predeceases you will be passed down evenly to his or her own heirs, usually children. So for example, you name your children as beneficiaries of your life insurance and you and one of your children pass away in an auto accident. A Per Stirpes beneficiary designation would mean your deceased child’s portion of your policy will go to their heirs directly. Otherwise, that child’s portion of the proceeds will go to their surviving siblings.
Recently, several life insurance carriers have announced changes in their premiums for permanent life insurance. Effective in May-June-July, American National, Principal, North American, AIG, Lincoln and Symetra have announced premium increases. Holding off buying life insurance will certainly lead to higher premiums not only because of changes in age and health but now because the industry has begun to reprice these policies.