You can use life insurance to deal with farm succession. One of the main things that insurance agents see is a farmer who is asset rich but cash poor. This scenario can create problems for farm succession, however, life insurance can step in and help create fairness in farm families and cash for the parties involved.
Here’s a great example to show how life insurance can help with farm succession. A farmer has one son and two daughters. In this particular case, the son wants to farm but the daughters have no interest in farming. How should the farmer plan succession of the farm so that the outcome is fair to everyone? One answer is through life insurance. The son can take over the farm and receive the benefits from the takeover, and the daughters can receive the benefit of the life insurance policy. This makes things very simple, and ensures that everyone is treated fairly in the succession of the farm business.
Watch Derrick Peterson explain this and a lot more in this highly informative video!
This workshop was funded in part by the Agriculture & Food Council of Alberta
For further resources on life insurance and farm insurance please refer to the links below: