It does not matter if you own a small or large business, because you probably worked for thousands of hours so that you can bring your business to a new level and increase its overall value and income. You can purchase an existing company or start from scratch, it does not matter, because you are the one who is breaking a sweat and trying to handle everything along the way. The fact is that your business would enter in problematic mode if something happens to you, and that is a fact that will affect not only yourself but your family and household as well. We cannot determine what will happen in the future, and even though we are trying to create everything to appear great, the situations can change in a matter of seconds. Therefore, in any event of death, if you are an individual that owns shares or partnership interest, you will be deemed when the Canada Revenue Agency decides to dispose of everything. Therefore, as a result, the problems that may arise include tax liability in the form of recaptured capital cost allowance and capital gains as well. In case you do not have available funds to handle this particular payment, these situations may happen: They may have to liquidate your business assets below the market value so that they can obtain the debt that you owe them. They will have to sell partnership interests and shares altogether. What Should You Do? You will be able to purchase life insurance so that you can get the necessary amount you will need to handle: Recaptured depreciation that may happen after death Tax Liability which is a result of Capital Gains Therefore, we have to state that choosing our life insurance policy is the best way to fund your business as well as beneficiaries, which will ultimately allow you to maintain the business as well as assets without liquidation. Remember that liquidation will leave everyone barehanded, which is why insurance is a great way to handle the expanses so that shareholders can sell their parts and get the money that they earned throughout the years of operation. You will be able to find an insurance solution and create it in different ways based on your specific requirements that your business feature. At the same time, you can own the life insurance policy as well as the ability to handle the partnership and everything that happened to your business after the death of a partner. If you are a business owner, have in mind that your future capital gain tax can be estimated based on professional valuation. Therefore, having life insurance will provide you an ability to handle taxes in case you pass away suddenly. Since the insurance premiums are often lower than future capital gains, you can get the insurance so that you can save your assets and estate from the problems that may happen after your death. By using insurance benefits to pay the taxes, you will be able to protect your heirs from selling personal assets as well as business to come up with funds that they need to have. They are going to be forced to liquidate assets so that they can handle tax bill, which is not a great situation you wish to leave your family after your death. Have in mind that market conditions tend to be poor and you may not find the buyer, so they have to go under market price to handle everything in a timely manner. You do not want to make your family lose other things apart from you, which is why you should find ways to protect both them and your business in case something happens.