By Michael Nedreski
For business owners, life insurance is more than personal protection, it’s a strategic asset that supports continuity, growth, and succession planning. Whether you own a small family business or a larger enterprise, the right insurance strategy can help safeguard operations and protect your legacy.
One common use is funding buy-sell agreements. If a business partner passes away, a buy-sell agreement ensures that the surviving partners have the funds to purchase the deceased partner’s share. Without life insurance, finding that cash quickly can be difficult and may put the business at risk.
Key person insurance is another essential tool. Every business has individuals whose contributions are critical to its success, whether that’s a founder, top salesperson, or specialized technician. If such a person were to pass away, key person insurance provides funds to cover lost revenue, recruit replacements, and maintain stability during the transition.
Life insurance can also be part of an executive bonus plan, where the business pays the premiums on a permanent life insurance policy owned by an executive. This not only provides valuable personal protection and potential cash value growth for the executive but also serves as a strong incentive for retention.
Finally, in succession planning, life insurance can provide the liquidity needed to transition ownership smoothly to the next generation or to key employees, covering taxes and other costs without disrupting operations. Permanent policies with cash value add even more flexibility; they can be used to finance expansions, buyouts, or supplemental retirement income for owners and executives.
For many entrepreneurs, life insurance is one of the most versatile and dependable planning tools available, offering both protection and financial leverage for the future.
If you’d like to get in touch with the White Oak Wealth Partners team, contact us by calling 814-835-4551, emailing MICHAEL.NEDRESKI@LPL.COM, or scheduling an appointment here.
About Michael
Michael Nedreski is Founder & Independent Wealth Coach at White Oak Wealth Partners, a specialized financial lifestyle and wealth management firm serving entrepreneurs, business owners, executives, and their families. Mike has 30-plus years of experience in the financial services industry and is committed to serving his clients through holistic financial planning, disciplined investment strategies, and proactive personal service.
A native of Erie, Pennsylvania, Mike began his career in the financial services industry in 1988. He has earned the Chartered Retirement Planning CounselorSM (CRPC®) designation conferred by College for Financial Planning (188-LPL). Mike is also an active member of the Financial Services Institute (FSI) and Financial Planning Association (FPA).
When not working, Mike enjoys spending time with his wife, Amy, and their children. He volunteers in his community and at his church and his children’s schools. An outdoors enthusiast, Mike loves hunting, fishing, golfing, and spending time near or on the water. He also enjoys working out and watching some of his favorite sports teams, the Pittsburgh Pirates and the Cleveland Browns. To learn more about Michael, connect with him on LinkedIn.