Hi everyone! This week marks National Insurance Awareness Day - it doesn't get the fanfare of a federal holiday, but for business owners it may be one of the more useful reminders on the calendar. It's also something that gets overlooked until it's too late.
So here's a question worth sitting with: if you - or a key partner - were suddenly out of the picture, would the business you've spent years building survive the transition intact?
Insurance isn't just protection - it's a planning tool. A few ways it does real work:
Funding a buy-sell agreement. If you co-own your business, you likely have (or should have) a buy-sell agreement spelling out what happens when an owner dies, becomes disabled, or exits. The agreement is only as good as its funding. Life insurance lets the surviving owners buy out a departing owner's interest without draining cash reserves, taking on debt, or ending up in business with a former partner's heirs.
Protecting the company itself. Key person coverage helps the business absorb the financial shock of losing someone essential - replacing lost revenue, funding the search for and training of a successor, and reassuring lenders and clients while you stabilize.
Taking care of the people you love. For many owners, the business is the estate. The right personal coverage makes sure your family receives fair value for your life's work, has liquidity to cover estate costs, and isn't forced into rushed decisions during the hardest season of their lives.
One more worth flagging: disability. Statistically, you're far more likely to face a serious illness or injury during your working years than to pass away - yet it's the coverage owners most often overlook.
None of this is one-size-fits-all, and the best solutions almost always come from getting the right people in the room. We're glad to look at how your current coverage lines up with your succession plan, your buy-sell agreement, and your goals for your family - and to coordinate with your CPA and attorney so the strategy holds up on every front.
We've been doing this for businesses in construction for over 40 years. If you have questions about how this works or want to review what you currently have in place, reach out.
Have a wonderful 4th! Kelly
McKay Retirement Consultants - kelly.mckay@mckaywealth.com / 2069734487
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Kelly McKay
Business Retirement Advisor
McKay Retirement Consultants
Renton WA
(206) 973-4487
kelly.mckay@mckaywealth.com------------------------------