MANY BUSINESS OWNERS HAVE NOT SAVED FOR RETIREMENT!

THERE IS STILL TIME TO REMEDY THE PROBLEM

Business owners insure their facilities, vehicles, and other physical assets against loss by theft, fire, storms, and accidents. What about protecting the business and business owner financially, for an unexpected illness, death, and retirement? 

LIFE INSURANCE CAN SOLVE THOSE PROBLEMS!

Life insurance can be used to: 

• Supplement Qualified Retirement Planning
• Protection From The Loss of Key Employees
• Business Succession Planning
• Estate Planning - Protecting Your Family

Supplement Qualified Retirement Planning

Many business owners spent most of their life creating and building a successful business. They put off thinking about own retirement and have not saved for retirement. Let's talk about planning for retirement. Consider plans to exit the business with enough value to support your retirement.  A cash value life insurance policy can be used to fund a supplement retirement plan. 

• Easy to administer compared to other tax qualified plans.
• Long history of being used.
• Most of the cash value is tax deductible.

Protection from Loss of Key Employees

Providing death benefit to a business if its owner or a significant employee dies. In a small business this is usually the owner, the founders, or key employees.

• The company owns and pay the premium for the policy.
• Used for collateral for a business loan.
• Used to pay off debt, investors, etc.

The video below explains the importance of protecting your key employees with a life insurance policy. 

Business Succession Planning

Chief concerns among business owners are what will happen upon the death of one of the owners, how will it affect the business, and protecting the other owners and heirs of the deceased owner. 

A buy-sell agreement can address all of those concerns. It is a contract among business owners, that when the death of one of the owners, requires the remaining owners or the company itself to purchase the deceased's interest in the company according to agreed upon terms in the contract. 

A buy-sell agreement can be funded through a life insurance policy. Ensures the funds are immediately available to buy the deceased ownership in the company, and death benefits are generally tax-free. 

Types of buy-sell life insurance include the following:

• Cross Purchase Plans: The owners enter into an agreement with each other. Each owner purchases a life insurance policy on the other owners, and will be named the beneficiary of the policy. Upon the death of an owner, each surviving owner receives life insurance proceeds income-tax free and proceeds to purchase the deceased’s business interests, while the heirs receive an agreed-upon payment for their business interest.

• Entity Plans: Also known as a stock redemption plan, the company purchases life insurance policies on each owner, with the company itself as the beneficiary. When an owner dies, the company receives the life insurance proceeds and uses  proceeds to purchase the deceased’s business interest, while the heirs receive an agreed-upon payment for their business interest.

Estate Planning - Protecting Your Family

Protecting the business owner's heirs is very important. Using a buy-sell agreement fully funded through life insurance, addresses concerns for heirs interest in the business can be protected. The video below explains the importance of estate planning with a business.