"> ">

Life Insurance for Business Owners: Protecting Your Business, Family, and Future

Why Business Owners Need Life Insurance

If you’re self-employed or own a business, you already know how much responsibility rests on your shoulders. Unlike traditional employees, you don’t have access to employer-provided benefits. Your income, employees, and family all rely on you.

That’s why life insurance for business owners and self-employed professionals is one of the smartest financial decisions you can make. It provides a safety net for both your family and your company—ensuring that your legacy continues even if you’re no longer here.


Business owner meeting with an insurance advisor to discuss key-person coverage and succession planning


Life insurance can help:

Replace lost income for your family

Pay off business loans or personal guarantees

Cover payroll and operating expenses

Provide cash flow to keep your company running smoothly

Without it, your loved ones and business partners could face unnecessary financial hardship.


🧾 Life Insurance for the Self-Employed

If you’re a freelancer, consultant, or sole proprietor, you are the business. Without you, income stops.

Term Life Insurance offers affordable protection that covers debts, income replacement, and family needs.

Permanent Life Insurance provides long-term coverage, builds cash value, and can serve as an additional financial asset for retirement or business funding.

Both options can be structured to protect your household, your clients, and your future.


👔 Key-Person Life Insurance

Many small and mid-sized businesses rely heavily on one person—the owner, a partner, or a top employee. If that person passes away, the company’s stability could be at risk.

Key-person life insurance helps mitigate that risk. The business owns the policy and is the beneficiary. If the insured key individual dies, the payout can:

Recruit and train a replacement

Reassure clients, vendors, and investors

Maintain cash flow and confidence during transition

This policy can be the difference between surviving a tragedy and shutting down operations.


🤝 Buy-Sell Agreement Funding

For partnerships, a buy-sell agreement funded by life insurance is essential to preserve ownership continuity.


Here’s how it works:

Each partner takes out a policy on the other(s).

If one passes away, the death benefit pays the surviving partners.

Those funds are used to buy out the deceased partner’s share at an agreed-upon valuation.

The deceased partner’s family receives fair compensation, while the remaining partners retain full control of the business.

This avoids disputes, legal battles, and financial strain during an already difficult time.


🧩 Choosing the Right Policy

When selecting life insurance as a business owner, consider:

Coverage Amount: Should cover debts, payroll, and personal income replacement.

Policy Type: Term or permanent, depending on budget and long-term goals.

Beneficiaries: Family, business entity, or partners—based on your purpose for the policy.

Working with a licensed, independent life insurance broker ensures your plan is tailored to both your business and personal needs.


🏆 Secure Your Business and Legacy

Your business is more than a career—it’s your life’s work and your family’s foundation. The right life insurance strategy protects your employees, your loved ones, and your future.

Whether you need coverage for key-person protection, buy-sell funding, or self-employed income replacement, we’ll help you design a customized plan that grows with your goals.


📞 Ready to Get Started?

Andrew DeFazio – Independent Life Insurance Broker
📧 Email: andrew@defaziolife.com

📱 Call/Text: (916) 715-3375

🌐 Website: www.defaziolife.com

Protect your business, your family, and your legacy — with a life insurance plan built for entrepreneurs.

Insurance Brokerage DeFazio Life