Deciding beneficiaries for business owner

Owning a business may be another reason you choose beneficiaries other than family members. Some business owners who are in partnerships arrange to have the proceeds of their life insurance policy tied to the price of the business. When an owner dies and the death benefit goes to the family (the heirs), that death benefit becomes the payment for the deceased’s share of the business. In this way, the other partners can buy the business without having to negotiate the price.

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