Benefit 2. Protection from Creditors
Due to regulatory changes and an increase in the number of smaller firms in the marketplace, the proportion of small businesses structured as sole proprietorships is increasing. As a result, these owners may be exposing themselves to unlimited personal liability claims.
Could a whole life coverage help protect their assets?
The answer is yes, because in some states, life insurance policies may be protected from creditors, although it's important to check your state's law first as not all states have the same law.
In our next blog post, we will discuss the third benefit of whole life insurance to small business owners - saving for retirement.