5 groups that really do need life insurance

Small-business owners
Small-business owners © Mangostock/

Entrepreneurs tend to think of themselves as rough and rugged -- self-made types. But now that you've gotten to where you are, there's a team depending on you. That's one reason you shouldn't dismiss the idea of life insurance.

Also, if you buy a permanent life insurance policy, you can borrow against the cash value for business expenses, says Komer.

"If you had life insurance, you could fund a retirement plan for employees," she says, adding that providing such perks can help retain good workers.

Or, you could join your business partners in purchasing a life insurance policy that would pay out if one of you dies. Those funds could then be used to buy out the deceased owner's share of the business at a prearranged price. This is known as a "buy-sell agreement."

Also, consider "key person" insurance if you have a particularly valuable employee whose death could have a major negative impact on your business. Such policies pay money to the company in the event of that person's death.

"Life insurance for business needs can be complicated, so it is important to work with a qualified insurance professional or adviser who can review your options," Rothschild says.


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