If you own a small business, you need small business life insurance. Although you work hard to grow your business and make it profitable for you and your family, debts, taxes and similar items could greatly reduce the amount of money your family inherits. While you might not automatically think you need life insurance, small business owners benefit from such policies because they cover business-related debts and other expenses while helping the family you've left behind survive the next few years.

There are two basic types of life insurance appropriate for small business owners: variable and term life insurance. Variable policies give a fixed death benefit and a cash value investment portion. Small business term life insurance is available for just you or a group related to your business (such as partners or employees); it is good for a certain number of years and is quite affordable. To purchase either a variable or term policy, follow these steps:

1. Determine what your small business life insurance needs are.

2. Gather quotes for small business life insurance.

3. Purchase your small business life insurance.

Action Steps
The best contacts and resources to help you get it done

Get quotes for small business life insurance online

Once you have a good idea of the kind of coverage you require, it's time to start gathering quotes from the companies that provide life insurance for small business. Online sources are easy to access and extremely helpful, providing a one-stop shop small business life insurance quotes from a variety of companies.

I recommend: Find a great deal on group life insurance for your small business through MostChoice. Use NetQuote to get and compare quotes from a number of business insurance providers able to meet all of your needs.

Purchase life insurance for small business owners

Some insurance companies offer life insurance policies designed specifically for the small business owner, to protect his business assets in the event of death. This sort of insurance is often referred to as key person or key employee life insurance.

I recommend: Purchase key employee life insurance from State Farm Insurance. Contact one of their agents for specific guidance. Get variable, term or universal life insurance for small business owners from Wachovia. Click on “Contact Us to Apply” on the right-hand side of the screen.

Get small business life insurance for your employees

Help your employees receive reasonable life insurance coverage by signing up for a group policy. Such policies are often more reasonable than individual plans, and they are tailor-made for small business employees.

I recommend: Contact a MetLife representative to discuss and obtain one of the various group life insurance policies offered specifically for small businesses. Get a group life insurance policy from Aetna, designed for employees. Click on "Contact Us" at the bottom right-hand corner of the page.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you have a business partner, your life insurance can fund your buy-sell agreement. Be sure to ask your small business life insurance agent about this.