Q: I recently started my business and I’m concerned what will happen to my business and my family if I were to die. What types of insurance do I need to make sure everything is covered?

-Lee, CA

A: I’ve seen businesses and families become devastated when the owner or partner dies. Typically, the mindset of a business owner is that they will never die and they normally don’t plan for their death. The more astute business owners will plan accordingly so events like your asking about don’t happen. The first thing to get is a complete whole life insurance package. This should cover both death and disability. So if either of these events occur, the other business partners and your family can still receive money while you are either dead or disabled. As a business owner, you know you can set up a deal many ways. I recommend that if you die there should be enough money covered in insurance that they can pay off your partners and your position will be liquidated from the company. Your family will receive the rest of the money. If you become disabled, you need to make sure you are covered to pay expenses will you are away from the office.

Another insurance I recommend is divorce insurance. If you become divorced, it can be very stressful to have your ex-spouse own half of your share. You want to make sure you’re covered enough where you can pay off your ex-spouse so you do not have to share business responsibilities with him or her.

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