Use life insurance for business transactions

Life insurance is a powerful tool that many people only see the surface of. Life insurance is typically used to finance someone’s death and support remaining family members. For Powers & Sons Construction, a partnership with an insurance company became the means to start building single family homes in northwest Indiana. The story starts with Mamon Powers, Sr.’s move from Mississippi to Gary as part of the great migration. After becoming the first Black apprentice in Indiana, Powers then worked for an African American real estate developer who led the way in constructing quality housing for the Black middle class. In 1967, Powers started his own company and continued building homes on the west side of Gary. But there was a problem. Many banks in the 1960s would not lend to Black entrepreneurs. Through his business relationships, Powers was able to form a strategic partnership with an insurance company that loaned Powers the capital to build predominantly Black neighborhoods. Using life insurance as a means to grow business may function differently today, but the same premise applies — entrepreneurs can use life insurance as a vehicle to fund business acquisition, business growth and mitigate risk and maintain control of a...