When you die:
◦ Your business loses its key person
◦ Your family's income source disappears
◦ Your estate is responsible for all business liabilities
◦ Creditors press or immediate payment
◦ "Accounts Receivable" are often uncollectible
◦ Your executor or administrator, in the absence of specific instructions, will be forced to sell the business to conserve your estate

Your family would face three alternatives.

1. Continue the business, if you provide for it in your will and your heirs:
◦ Have the ability and experience
◦ Have sufficient cash after debts are paid
◦ Are able to obtain adequate credit
◦ Are able to retain your customers

2. Liquidate
◦ A forced sale attracts bargain-hunters
◦ With "goodwill" gone, value of the business is drastically reduced (40% to 90%)

3. Sell as a going concern
◦ Finding a qualified, interested buyer may be difficult
◦ Cash for purchase may not be readily available
◦ Agreement on a price fair to all parties may be difficult to reach

There is a better solution:

a) include provisions in your will for the business to be continued pending settlement of the estate, the executor to be relieved of personal liability in the interim operation of the business
b) provide sufficient business life insurance to carry out your plans for disposition of the business, whatever they may be
c) purchase personal disability insurance to provide an income in the event of your disability

ADVANTAGES OF BUSINESS LIFE AND DISABILITY INSURANCE

Your family may keep or lose the full value of your business.

Today the choice is yours. Which will it be?