Make two short lists
On one page, write the household costs your family relies on you to cover. On another, write business obligations and the people who would need help keeping things running.
Different insurance arrangements can serve different purposes. A business-owned key-person policy may pay the business, so do not automatically count its benefit as money available to your family.
Know who receives each benefit
- Who owns the policy?
- Whose life is insured?
- Who is named to receive the benefit?
- Is the purpose family support, a business need, or something else?
- Are ownership or partnership agreements involved?
Allow for changing income
Use actual recent household spending and the take-home income available after business costs and taxes. Look at a lower-income month as well as a typical one.
List when money comes in and when bills are due. A positive monthly total does not always mean cash is available on the day a premium is due. The family budget guide helps you prepare those questions.
Keep the first conversation focused
Bring your family priorities, your current insurance information, and the business questions you want to resolve. The family needs worksheet is for household planning; it does not value a business or design a partnership agreement.
For business ownership, tax, and legal arrangements, coordinate with appropriately qualified advisers. You can start with a short message to Timmy and schedule a conversation that fits your workday.
Sources & more help
General education. Policy terms, available options, and state rules vary. Check the details with your insurer and the appropriate professional.