Risks Facing Christian Business Owners

As a faith‑based entrepreneur, your business provides income for your family and employment for others. Without proper protection, your unexpected death could jeopardize your company’s stability and ministry impact.

Key person insurance protects your enterprise from financial fallout. According to industry experts, coverage often ranges from five to seven times the key person’s salary or estimated contribution to company earnings.

Buy/sell agreements funded by life insurance ensure a smooth ownership transition if you have partners.

Policy Structures for Business Protection

Key Person Coverage: the business owns the policy, pays the premium, and uses the death benefit to cover revenue loss, recruit talent, and reassure creditors.

Buy/Sell Agreements: partners agree to purchase the deceased owner’s shares using life insurance proceeds, preserving ownership structure and preventing conflicts.

Personal Coverage: ensure your family has resources to maintain their lifestyle and continue charitable giving if you pass away.

  • Determine the value of your ownership stake
  • Consult legal counsel to draft buy/sell agreements
  • Coordinate personal and business policies for holistic protection

Integrating Faith and Business Planning

Faith‑driven owners recognize that their company is God’s resource. Insurance planning reflects wise stewardship and ensures the mission continues.

Discuss charitable giving strategies, such as naming your church or mission as a contingent beneficiary or gifting a portion of your ownership interest.

Encourage your employees with financial wellness education and provide group coverage options.

Frequently Asked Questions

How much key person coverage do I need?

Experts often recommend five to seven times the key person’s salary or the financial value they bring to the company.

What is a buy/sell agreement?

A legal contract between business partners that stipulates how ownership shares will be transferred upon death, funded by life insurance to ensure liquidity.

Can I use business insurance for charitable giving?

Yes. You can designate a portion of the death benefit to a ministry or mission project, reflecting your company’s kingdom purpose.

Disclosures: For educational purposes only; not tax, legal, or investment advice. Product availability, features, and rates vary by carrier, underwriting, and state. Crocker Financial is licensed in OH, SC, SD, VA, TN, and IN. Consult your professional advisors for personalized guidance.