You have spent a lifetime building your business. But eventually there will come a time when you will need to start thinking less about building and more about transitioning. Are you prepared for the eventual transition of your business?
You might sell the business outright or pass your business on to your children, or other family members. You may retire completely or continue to work during the transition. Regardless of how you decide to handle your transition, you will need an exit strategy.
Have you thought about how you would like to transition out of your business? Among the things you will want to consider as you plan your exit strategy are:
- When to sell the business and to whom
- How the purchase price will be determined, funded and paid
- How to protect your business value from estate taxes
For many, business continuation planning may seem like a daunting task. Maybe that’s why so few business owners successfully transfer their business. If you want to make sure your objectives and goals are met, it’s important to take time to think about your exit plan. Fortunately, there are steps you can take today, such as establishing a Buy-Sell plan that can help provide the funds necessary for a successor owner to purchase your share of the business. When the time comes, would you like to be able to walk away from your business knowing that your goals were met, all by just taking a little time to plan today?
You never know when a major illness may sideline you or someone you love.
Medical advances and a higher standard of living have had a positive effect on mortality, and Americans are living longer. While no one likes to think about how an unexpected illness can affect their health and lifestyle, the financial impact can be substantial. If you were to become ill or disabled, are you prepared for the costs which may not be covered? You don’t want to see all your hard-earned assets jeopardized by expensive medical costs that you may not have planned for.
It’s important to do everything you can to stay healthy and take care of yourself. We live in a fast food culture, and have more demands on our time than ever. It’s never too late to start exercising and eating right, which can help increase your longevity and protect against illness. You can help safeguard yourself financially against illness by not only making healthy choices, but also preparing for the unexpected.
One of the most effective strategies can be purchasing life insurance with optional, at no additional cost Accelerated Benefits Riders (ABRs) or Living Benefits.* Your loved ones are not only protected in the event of your death, but also through access to the death benefit in the event of a chronic, critical or terminal illness. Any illness can take a tremendous toll on a family emotionally and financially, but protecting yourself now can help ensure the best possible future.
*Accelerated Benefit Riders are optional and may not be available in all states. Payment of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy. Receipt of Accelerated Benefits may be a taxable event and may affect your eligibility for public assistance programs. Please consult your personal tax adviser to determine the tax status of any benefits paid under this rider and with social service agencies concerning how receipt of such payment will affect you, your spouse and your family’s eligibility for public assistance.
My Home (Mortgage Protection)
Your house is a big investment – probably one of the biggest you’re every likely to make. It is also the place that you and your loved ones call home; a shelter and haven from the outside world. That’s why it is so important to ensure that your home and family are protected in the event of your death. It’s not a topic that any of us like to dwell on, but the sad fact is that should you die and the family are no longer able to afford repayments on the house, they will lose the property and the roof from over their heads.
Having a good life insurance policy in place to protect your property in the event of your death is vital. When you die, your family will have enough to worry about without the added stress of how they are going to hold on to the family home. Your life insurance policy will ensure that this problem is eliminated, with the mortgage balance being paid in full upon your death.