Literacy · Business
If the Owner Dies, the Company Still Has Payroll
Your income stops. Their bills don't. A company does not pause. Key-person and shareholder coverage is how the payroll and the partners have a plan.
Your income stops. Their bills don't. If you own the company, those bills include payroll, loans with your name on them, and a partner who may inherit a fight instead of a plan.
Key-person coverage pays the business if a founder or rainmaker dies, so the company can keep operating while it replaces what that person did. Shareholder coverage, behind a proper agreement, lets the surviving owners buy the shares instead of ending up in business with the estate.
The corporation can own a policy and pay the premium. What that means for tax depends on the company and the rules at the time. This page is general information, not tax or legal advice. Bring the shareholder agreement, or the fact that you do not have one, to the call.
Send your name, email, and phone, then book the call. An advisor licensed through Greatway Financial writes the personal and the company coverage with you. We are not Greatway Financial.
The checklist
- List loans that have your personal name on them.
- Say whether a partner would need to buy your shares.
- Ask who should own the policy: you, or the company.
- Do not cancel personal coverage while a company policy is still an idea.
- Send your name and book the call. Payroll will not wait.
Your family should not pay this gap. Talk to an Advisor, then book the call.