Business Life Insurance

Just imagine a few of the benefits you, your family and business partners would gain with a well thought out strategy using life insurance as a funding mechanism in your business financial plan:
- Assures orderly transfer of the business upon death of a business owner.
- Prevents conflict and disputes with surviving owners.
- Assures a fair price for the business.
- May set the value of your business for federal estate tax purposes.
- Can provide cash for your estate.
- Allows you to maintain control of the business.
- Prevents disputes with family members.
- Provides an income tax-free death benefit to purchase shares of the business.
Business Owners Can Use Life Insurance to fund the following business continuation arrangements:
- Buy-Sell Plan: Is often the cornerstone of a business’s succession plan. Life insurance and disability income insurance policies provide immediate funding for the sale of a business when a specified event happens such as the death or retirement of a business owner.
- 162 Executive Bonus Plan: Is a simple, yet powerful way for business owners or companies to provide additional supplemental benefits for key employees or executives of their choice.
- Family Business Planning: Uses life insurance as an excellent way to equalize the amount of assets distributed to the business owner’s children, thereby preventing disputes and conflicts.
- Person Business Bank or Collateral: The life insurance death benefits or cash buildup may be used for those purposes.
- Key Person Insurance: Allows business owners to use life insurance proceeds to cover many business expenses that arise upon the death of a key person such as a stakeholder or individuals who possesses unique abilities essential to the continued success of a business.
- Retirement Plans: Offers a group retirement plan or individual retirement plan to help you or your employees save for retirement. Permanent life insurance can be a valuable key component.
- Split-Dollar Insurance: Brings together the life insurance needs of one person with the premium-paying ability of another. Split-dollar life insurance plans are flexible and can be tailored to meet a variety of tax and business planning needs.
- Supplemental Executive Retirement Plan {SERP): Provides tailored retirement benefits for highly compensated individuals. A SERP enables you to place “golden handcuffs” on your most valuable employees by offering them an incentive that is too good from which to walk away.
- Section 303 Stock Redemption Strategy: A special type of stock redemption plan that can provide cash to the estate of a deceased shareholder in a tax-favored manner. Allows a corporation to redeem a deceased shareholder’s stock without incurring income taxable dividends.