Whole life insurance offers an income tax-free death benefit as well as deferred cash value growth.

Businesses go through several stages. When they reach the growth stage, they may require additional financing above and beyond what the owner has saved or what friends and family can offer. These improvements may include increasing inventory, retooling existing or purchasing new equipment, expanding the building, or developing a new market.

In fact, a recent Forbes Advisor survey sought to identify how business owners used funds from their business loans. The most common use of the funds was for business expansion, with 42 percent selecting this option. Equipment purchases came in second, cited by 29 percent of respondents, followed closely by marketing and advertising, business franchising, and commercial real estate purchases/remodeling.