Small business owners often have their largest asset tied up in a company that has no plan for death, disability or retirement. You don’t need years of training to help. This checklist covers the six core needs to review with every business owner client.
Key takeaways
- Most business owners have six core needs: retirement income, exit planning, income protection, business protection, wealth transfer and survivor income.
- A business valuation and a review of the existing buy-sell agreement often reveal the biggest gaps.
- SRS can provide business case support so you can start these conversations without being an expert.
Helping clients see the real value of their business is often what uncovers the planning gap.
The six core needs checklist
Use these six areas as a checklist in your next business owner review:
- Retirement income. Is the owner saving outside the business, or is the business the retirement plan?
- Exit planning. Who will buy the business, at what price, and how will the purchase be funded?
- Income protection. What happens to the owner’s income, and the business, if the owner becomes disabled?
- Business protection. Is there key person coverage on the people who drive revenue?
- Wealth transfer. How will the business and other assets pass to the next generation?
- Survivor income. Will the family have income if the owner dies before the business is sold?
Start with the value of the business
Many owners have never had a formal estimate of what their business is worth. Without one, it is hard to size a buy-sell, key person coverage or an estate plan. A business valuation gives the owner perspective and usually starts the planning conversation on its own.
Review the buy-sell agreement
If a buy-sell agreement exists, check that it is funded, that the price or formula is current and that the ownership structure still makes sense. Many agreements were signed years ago and never updated as the business grew. Our article on cross-purchase buy-sell agreements covers common structures.
How SRS supports business cases
Our team works with you before, during and after the sale. We can help you:
- Decide which business owners to approach and how
- Build a simple marketing campaign
- Help clients estimate the value of their business and review buy-sell agreements
- Explain the findings and create an action plan
Contact us to talk through a business owner client.
Frequently asked questions
What insurance does a small business owner need?
Common needs include key person life insurance, buy-sell funding, disability income and business overhead expense coverage, and personal life insurance for survivor income. The right mix depends on the business and the owner’s goals.
Why does a business valuation matter for insurance planning?
The value of the business drives how much buy-sell funding, key person coverage and estate planning the owner needs. Without a current value, coverage is often too low.
How often should a buy-sell agreement be reviewed?
A good rule is to review it every few years and after any major change in value, ownership or tax law, so the price and funding stay current.
Reviewed by Tim Fuller on 2026-09-26
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.
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