Barth Howard Homeowners Insurance and Auto Insurance in San Ramon, California 

Site Map | Search     

 Barth Howard Insurance Agency


Home Personal Insurance Business Insurance Health & Dental Glossary Contact Us
General Liability E&O D&O EPLI Surety Bonds Business Life


I WILL save you money on your Homeowners and Auto Insurance in California.  CALL ME NOW!!




and get more


Service & Quality

Open for your calls

Weekdays, Evenings

& Saturdays!

(925) 699-4200




View Barth's Linkedin Profile


Be a HERO For Babies!  Make a small Donation Now!


Business Continuation / Business Life Insurance


As a business owner, you spend many hours working and developing your business.

But have you thought about what would happen to your business should you or your partner become disabled or die? To preserve the future of your business, it is important that your create a business continuation plan. Such plans often include a "buy-sell" agreement.  A buy-sell agreement, funded by life insurance and written while the owners are alive, ensures that your heirs can sell their share of the business to surviving owners - and that the surviving owners can buy their share.  Each owner also agrees not to sell their interests without first offering it to the remaining owners at an agreed-upon price or formula.


Consider the following options for your business:


Partnership Life Insurance:

Partnership Life Insurance is designed to help your business survive the loss of a partner. To preserve the business, many partnerships have a buy-sell agreement, which fixes both the price and terms of the sale in the event a surviving partner buys out a deceased partner's interest. Life insurance can provide the necessary funds no matter when the partner's death occurs.


Key Person / Key Man / Key Executive Life Insurance:

Key person insurance, sometimes called key man insurance or key executive insurance, is designed to protect a business in the event of the death of an executive or key team member who makes a significant contribution towards the profitability or stability of the business.


Buying key person insurance can ensure that a business plan is carried on even if a key executive dies. Key man insurance benefits replace lost revenue or fund the search for a replacement executive. What is key man insurance? It's essentially just a basic life insurance policy for anywhere between $500,000 and $5 million. Usually, they're 10- or 20-year term policies.


A popular twist on key person insurance is called "first to die." This type of insurance pays only for the first death in a multiple person policy, and thus, is much less expensive than having individual policies for each key person. Plus, "first to die" policies allow the survivors to take out a subsequent new policy without needing to prove their insurability all over again.


Venture capitalists, banks and other lenders often require key-executive insurance for the startup companies they fund. If a death occurs, the key man insurance payment typically goes to the start-up company or sometimes it goes directly to the venture capitalist. This allows the investors and creditors to protect their investment.


Even if you are not being asked to buy key man insurance by your investors, it can make sense in some cases. Think about what would happen if you or one of your business partners passed away. If the situation would be dire, it may make sense to insure against it. If it would have little effect on the business, there's no big need to buy key person insurance.


Sole Proprietorship Life Insurance:

You may want to transfer your business to a successor, in which case life insurance purchased by your heirs can provide funds to pay estate taxes and help sustain the business during the initial period of new management.  Or, if your employees are interested in carrying on your business, a buy-sell agreement can be funded with life insurance to assure that your family will receive the optimum value for the business.


Stockholder Life Insurance:

We recommend that you use life insurance to create a pre-death buy-sell agreement certifying that if a stockholder should die, the remaining stockholders can purchase his/her shares at a fixed price. This will guarantee that heirs will receive cash for their inherited business interest and that surviving stockholders will maintain control of the business.



California Insurance Agent



                                                                           Legal Disclaimer | Privacy Policy

Representative of top-rated insurance companies: Farmers Insurance Group, Blue Cross, New World Life, Foremost, CNA, United States Liability

Selling fire, homeautos, umbrella, Boats, life, business, commercial auto, earthquake, & flood.   California Insurance Agency directly serving the

entire State Of California and the communities of Alamo, Blackhawk, Danville, Dublin, Pleasanton, San Ramon, and greater SanFrancisco Eastbay

(All of California and zip codes 94506, 94507, 94526, 94566, 94568, 94582, 94583, 95688)