Life Insurance for Business Partners

Having life insurance for your business partner is critical to the success of your business. Life insurance for business partners is eligible for standard rates, but your and your partner's life insurance quotes will depend on your health records and where you live. Compare quotes from multiple companies in order to find the best rates.

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Written by

Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Jul 16, 2021

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The Rundown

  • Most small businesses do not make it past the first generation
  • Life insurance can secure the future of your business and your family
  • What you pay when you take out a life insurance policy on a business partner depends on your state of residence

Going into business with someone is delving into the world of the unknown. Getting life insurance for business partners shouldn’t need to be a further headache.

We are going to go through what separates life insurance from other business insurance, why you may need life insurance for business partners, and how much it’ll cost.

Before diving in, type your ZIP code into our free and helpful tool above to find the most affordable life insurance for business partners from providers in your area.

What is life insurance for business partners?

With four million business partnerships in the United States, financial health is important not only to small businesses but to the national economy as a whole.

According to the 2019 U.S. Family Business Survey by PricewaterhouseCoopers (PwC), most small businesses don’t make it past the first generation. Business life insurance is a critical part of your success. Unexpected things happen in life all the time, and it’s best that you have a plan to back yourself up. If you or your own family members aren’t covered, what happens in the case of your untimely death?

They are left with a surplus of debt that neither they nor the business can escape from. It is best to be prepared to avoid putting unwanted stress on your business partners and family members.

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How expensive is life insurance for business partners?

Just being a business partner is not going to elevate or decrease your rates when it comes to life insurance. You’ll have to scan through standard policies and find which one works for you.

Let’s take a look at a table that compares rates offered by various companies in multiple states. Which company has the cheapest life insurance rates for business partners in your area?

Average Car Insurance Rates by State and Company
StateAverage by StateAllstateAmerican FamilyFarmersGEICOLiberty MutualNationwideProgressiveState FarmTravelersUSAA
Alabama$3,566.96$3,311.52-$4,185.80$2,866.60$4,005.48$2,662.66$4,450.52$4,798.15$3,697.80$2,124.09
Alaska$3,421.51$3,145.31$4,153.07-$2,879.96$5,295.55-$3,062.85$2,228.12-$2,454.21
Arizona$3,770.97$4,904.10-$5,000.08$2,264.71-$3,496.08$3,577.50$4,756.25$3,084.74$3,084.29
Arkansas$4,124.98$5,150.03-$4,257.87$3,484.63-$3,861.79$5,312.09$2,789.03$5,973.33$2,171.06
California$3,688.93$4,532.96-$4,998.78$2,885.65$3,034.42$4,653.19$2,849.67$4,202.28$3,349.54$2,693.87
Colorado$3,876.39$5,537.17$3,733.02$5,290.24$3,091.69$2,797.74$3,739.47$4,231.92$3,270.77-$3,338.87
Connecticut$4,618.92$5,831.60--$3,073.66$7,282.87$3,672.34$4,920.35$2,976.24$6,004.29$3,190.00
Delaware$5,986.32$6,316.06--$3,727.29$18,360.02$4,330.21$4,181.83$4,466.85$4,182.36$2,325.98
District of Columbia$4,439.24$6,468.92--$3,692.81-$4,848.98$4,970.26$4,074.05-$2,580.44
Florida$4,680.46$7,440.46--$3,783.63$5,368.15$4,339.60$5,583.30$3,397.67-$2,850.41
Georgia$4,966.83$4,210.70--$2,977.20$10,053.44$6,484.90$4,499.22$3,384.88-$3,157.46
Hawaii$2,555.64$2,173.49-$4,763.82$3,358.86$3,189.55$2,551.83$2,177.93$1,040.28-$1,189.35
Idaho$2,979.09$4,088.76$3,728.79$3,168.28$2,770.68$2,301.51$3,032.19-$1,867.96$3,226.29$1,877.61
Illinois$3,305.48$5,204.41$3,815.31$4,605.20$2,779.16$2,277.65$2,711.81$3,536.65$2,344.88$2,499.76$2,770.21
Indiana$3,414.97$3,978.81$3,679.68$3,437.55$2,261.07$5,781.35-$3,898.00$2,408.94$3,393.75$1,630.86
Iowa$2,981.28$2,965.86$3,021.81$2,435.72$2,296.16$4,415.28$2,735.44$2,395.50$2,224.51$5,429.38$1,852.57
Kansas$3,279.62$4,010.23$2,146.40$3,703.77$3,220.65$4,784.42$2,475.59$4,144.38$2,720.00$4,341.43$2,382.61
Kentucky$5,195.40$7,143.92--$4,633.59$5,930.97$5,503.23$5,547.63$3,354.32$6,551.68$2,897.89
Louisiana$5,711.34$5,998.79--$6,154.60--$7,471.10$4,579.12-$4,353.12
Maine$2,953.28$3,675.59-$2,770.15$2,823.05$4,331.39-$3,643.59$2,198.68$2,252.97$1,930.79
Maryland$4,582.70$5,233.17--$3,832.63$9,297.55$2,915.69$4,094.86$3,960.87-$2,744.14
Massachusetts$2,678.85$2,708.53--$1,510.17$4,339.35-$3,835.11$1,361.86$3,537.94$1,458.99
Median$3,660.89$4,532.96$3,698.77$3,907.99$3,073.66$5,295.55$3,187.20$3,935.36$2,731.48$3,729.32$2,489.49
Michigan$10,498.64$22,902.59-$8,503.60$6,430.11$20,000.04$6,327.38$5,364.55$12,565.52$8,773.97$3,620.00
Minnesota$4,403.25$4,532.01$3,521.29$3,137.45$3,498.54$13,563.61$2,926.49-$2,066.99-$2,861.60
Mississippi$3,664.57$4,942.11--$4,087.21$4,455.94$2,756.53$4,308.85$2,980.48$3,729.32$2,056.13
Missouri$3,328.93$4,096.15$3,286.90$4,312.19$2,885.33$4,518.67$2,265.35$3,419.14$2,692.91-$2,525.78
Montana$3,220.84$4,672.10-$3,907.55$3,602.35$1,326.11$3,478.26$4,330.76$2,417.74-$2,031.89
Nebraska$3,283.68$3,198.83$2,215.13$3,997.29$3,837.49$6,241.52$2,603.94$3,758.01$2,438.71-$2,330.78
Nevada$4,861.70$5,371.62$5,441.18$5,595.56$3,662.09$6,201.55$3,477.14$4,062.57$5,796.34$5,360.41$3,069.07
New Hampshire$3,151.77$2,725.01--$1,615.02$8,444.41$2,491.10$2,694.45$2,185.46-$1,906.96
New Jersey$5,515.21$5,713.58-$7,617.00$2,754.94$6,766.62-$3,972.72$7,527.16$4,254.49-
New Mexico$3,463.64$4,200.65-$4,315.53$4,458.30-$3,514.38$3,119.18$2,340.66-$2,296.77
New York$4,289.88$4,740.97--$2,428.24$6,540.73$4,012.93$3,771.15$4,484.58$4,578.79$3,761.69
North Carolina$3,393.11$7,190.43--$2,936.69$2,182.71$2,848.03$2,382.61$3,078.65$3,132.66-
North Dakota$4,165.84$4,669.31$3,812.40$3,092.49$2,668.24$12,852.83$2,560.35$3,623.06$2,560.53-$2,006.80
Ohio$2,709.71$3,197.22$1,515.17$3,423.01$1,867.19$4,429.74$3,300.89$3,436.96$2,507.88$3,135.16$1,478.46
Oklahoma$4,142.33$3,718.62-$4,142.40$3,437.34$6,874.62-$4,832.35$2,816.80-$3,174.15
Oregon$3,467.77$4,765.95$3,527.28$3,753.52$3,220.12$4,334.55$3,176.83$3,629.13$2,731.48$2,892.19$2,587.15
Pennsylvania$4,034.50$3,984.12--$2,605.22$6,055.20$2,800.37$4,451.00$2,744.23$7,842.47$1,793.37
Rhode Island$5,003.36$4,959.45--$5,602.63$6,184.12$4,409.63$5,231.09$2,406.51$6,909.45$4,323.98
South Carolina$3,781.14$3,903.43-$4,691.85$3,178.01-$3,625.49$4,573.08$3,071.34-$3,424.77
South Dakota$3,982.27$4,723.72$4,047.47$3,768.80$2,940.29$7,515.99$2,737.66$3,752.81$2,306.23--
Tennessee$3,660.89$4,828.85-$3,430.07$3,283.42$6,206.69$3,424.96$3,656.91$2,639.30$2,738.52$2,739.28
Texas$4,043.28$5,485.44$4,848.72-$3,263.28-$3,867.55$4,664.69$2,879.94-$2,487.89
Utah$3,611.89$3,566.42$3,698.77$3,907.99$2,965.57$4,327.76$2,986.57$3,830.10$4,645.83-$2,491.10
Vermont$3,234.13$3,190.38--$2,195.71$3,621.08$2,128.21$5,217.14$4,382.84-$1,903.55
Virginia$2,357.87$3,386.80--$2,061.53-$2,073.00$2,498.58$2,268.95-$1,858.38
Washington$3,059.32$3,540.52$3,713.02$2,962.00$2,568.65$3,994.73$2,129.84$3,209.52$2,499.78-$2,262.16
West Virginia$2,595.36$3,820.68--$2,120.80$2,924.39--$2,126.32-$1,984.62
Wisconsin$3,606.06$4,854.41$1,513.27$3,777.49$3,926.20$6,758.85$5,224.99$3,128.91$2,387.53-$2,975.74
Wyoming$3,200.08$4,373.93-$3,069.35$3,496.56$1,989.36$3,187.20$4,401.17$2,303.55-$2,779.53
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It all depends on where you live. Just look at Virginia where USAA is $1,500 less per year than Allstate.

What are some good companies to choose from?

When you are searching for the best life insurance for you and your business partner, you’ll want a top-rated company.

These two organizations provide the peace of mind that comes with choosing a top-rated company you know ahead of time will suit your needs.

Let’s look at a quick table that will show you the ratings provided by not just the BBB and A.M. Best, but J.D. Power as well.

Life Insurance Companies with the Highest Ratings
CompaniesBetter Business Bureau (BBB)A.M. BestJ.D. Power
AIGA+A718
AXA EquitableA+A+752
Banner LifeA+A+N/A
BrighthouseA+A+N/A
Guardian LifeA+A++760
John HancockA+A+739
Lincoln FinancialA+A+744
Mass MutualA+A++780
MetlifeB-A+780
Mutual of OmahaA+A+766
NationwideA+A+806
Pacific LifeA+A+N/A
Principal FinancialA+A+774
ProtectiveA+A+742
PrudentialAA+770
SBLIA+A+N/A
TransamericaA+A+720
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As you can see, there are plenty of companies that received the BBB’s top rating of “A+.” There are a few companies, like Guardian life, that received top marks from both the BBB and A.M. Best.

In short, you have options when you buy life insurance for small-business partners.

But, don’t let your life insurance comparison stop here. Type your ZIP code into our free and helpful tool below to find affordable partner’s life insurance quotes in your area.

Free Insurance Comparison

Compare quotes from the top insurance companies and save!

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