Life Insurance Strategies to Help Your Business Thrive

Essence
August is National Black Business Month. Black-owned businesses play a significant role in strengthening the Black community. We chatted with WFG Financial Professional Tammy Fraser and Nationwide Life Insurance Regional Vice President Candice Darien on ways that Black Business owners can continue protecting themselves and serving their communities through life insurance.
According to Tammy Fraser, “Life insurance is the foundation of a financial plan.” Life insurance can help ensure that your business continues to contribute to the community, providing jobs, services, and a sense of pride. Protecting your business is a way to support economic growth within the Black community. Life insurance is more than just a safety net; it’s a crucial tool for ensuring the longevity and success of Black-owned businesses.
Here are several reasons entrepreneurs should consider life insurance as an essential part of their business strategy.
1. Protect Your Business’s Continuity
“Your business is your legacy” according to Fraser. “If proper planning is done, a business can thrive even if the unexpected happens.” Life insurance helps ensure that your business continues to operate smoothly if something happens to you. The payout can be used to cover operational expenses, pay off debts, or even hire a replacement to keep your business afloat.
2. Secure Financial Stability for Your Family
Life insurance provides financial security for your loved ones. Black business owners often invest their personal resources into their businesses. A life insurance policy can help your family maintain their lifestyle, pay off any business-related debts, and avoid financial hardship during a challenging time.
3. Attract and Retain Top Talent
Offering life insurance as part of your employee benefits package can make your business more attractive to top talent. Employees appreciate knowing that their employer cares about their well-being and the security of their families. This can help you attract and retain the best workers, contributing to your business’s success. “There’s not enough understanding about key person insurance and buy-sell agreements in our community, and a stronger educational foundation could help Black businesses” Tammy Fraser said.
4. Build Wealth and Establish a Legacy
Life insurance isn’t just about protection; it can also be a tool for wealth-building. Some policies accumulate cash value over time, providing you with a resource you can tap into for future investments or emergencies. According to Candice Darien, “a permanent life policy’s benefits extend to retirement planning as well where the business owner can save as much as they want, without being restricted by some of the limits in more common retirement accounts. The dual-benefit of accumulation and death proceeds helps establish a lasting legacy for your family and your community.”
5. Facilitate Business Succession Planning
Succession planning is vital for any business owner. Life insurance can fund buy-sell agreements, making it easier for your partners to buy out your share of the business if you pass away. This ensures a smooth transition and keeps the business in capable hands. Tammy Fraser explained, “if you compare two family businesses side-by-side, one with life insurance and one without, it’s a big difference what their outcomes will be if something happens.”
6. Support the Black Community
Black-owned businesses play a significant role in strengthening the community. Candice Darien noted, “Life insurance can help ensure that your business continues to contribute to the community, providing jobs, services, and a sense of pride. Protecting your business is a way to support economic growth within the Black community. Not only are the proceeds helping our immediate family, but the next generation as well.”
Final Thoughts
Life insurance is not just an individual need but a business necessity for business owners. Protecting your business, your family, and your legacy is crucial for long-term success and stability. If you’re ready to take the next step in securing your business’s future, consider exploring life insurance options tailored to your unique needs. You can connect with Tammy Fraser by visiting her website.
Nationwide and World Financial Group are separate and non-affiliated entities.