Name: Specialty Textile Group
City: Dalton, Ga.
Co-owners: Scott Higgins (quoted), Patrick Gilligan, Daniel Gilligan and Troy Corey (not pictured)
Modern Woodmen representative: Lynn Henderson
Tell us a little about your business. We make synthetic silk carpets and rugs for residential and commercial use. All four of us partners bring a little something different to the table.
Why is business planning important? We put a lot of time and money into this project. It’s important for us to feel our families will be taken care of if one of us isn’t able to see the whole thing through. You hear nightmares about an otherwise successful business going downhill when someone dies.
How is Modern Woodmen helping you with your business planning needs? If one of us dies, we don’t want to end up becoming partners with an estate, a trust or an individual who doesn’t have the skills to work in the business. Yet we want our families to be compensated for the work we did here. Fairly compensating the deceased’s family would devastate the company financially.
To guard against that, Lynn helped put life insurance in place for each of the partners. The term policies we bought were an inexpensive way for a start-up like us to purchase the significant amount of coverage we needed. If one of us dies, the life insurance proceeds go to the partner’s beneficiaries in lieu of their claim to stock in the company.
You’ve built it, now protect it
As a business owner, you wear many hats and may be overwhelmed with day-to-day obligations. However, it’s important to take time to think about the future financial security of your business.
Business continuation planning – also known as buy-sell planning – is preparing in advance for the sale or transfer of your business interest following:
- Premature death.
Without this important planning, everything you’ve worked so hard to build could be exposed to loss. Life and disability insurance are two common ways to help protect your business and the people who depend on it.
Talk to your representative to learn more about this and other key areas of financial planning to address throughout your life.