Let us suppose you have a business worth $3,000,000 and other assets worth $1,000,000. Everything is looking good. I approach you about life insurance. You suggest that the business is your estate. The wife and children will have $4,000,000 in the event of your death.
What should I do next? I propose that we look at the problem from another perspective.
Suppose I have a client who is a young widow with children. She has no experience running a business. She has $3,000,000 cash and another $1,000,000 in other assets. She comes to me for investment advice. I tell her that I have an opportunity. I know a business that is young but growing and prosperous and worth $3,000,000.
The business is worth $3,000,000 but the founder, principal decision maker, customer relations person, inventor, and the person the bank and suppliers trust will not be available for the transition, but…
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