The prolonged economic downturn has forced many entrepreneurs to reevaluate their businesses. Cutting expenses wherever possible, seeking new revenue sources, or creating unusual partnerships. But what happens to the business and to the entrepreneur’s family members when the unthinkable happens? What if the entrepreneur is an a devastating accident and cannot work or worse, he dies unexpectedly?

To manage cash flow the business owner might have let their insurance policy for short-term or long-term disability lapse. When an accident renders the entrepreneur unable to work for 3-6 months, who is available to run the business? For solo-preneurs, this could be a big issue. A lot of coaches, CPAs and general contractors might fall into this category. Do they have someone, a strategic partner, that can handle their client demands temporarily?

In tough economic times, a young business owner might not see the need for key-man life insurance or life insurance for his family. This week my husband and I were reminded how precious life is and how quickly things can change after hearing about the death of one of his friends. He was only 53 years old, fairly young by most standards. Life insurance is a vehicle that could help a family, such as this one, survive financially without the on-going revenue stream from the spouse.

While we all hate to think bad things can happen to us or to our loved ones, proper planning makes the worst of times easier for those left to pick-up the work load or forced to create a new life without the one they love.