Business life insurance can provide financial safeguarding for a company in the event of the death of a key employee or owner. The death benefit can be used to cover expenses such as recruitment and training of a replacement, lost revenue, and outstanding debts. Additionally, some business life insurance policies can accumulate cash value over time, which can be accessed by the company during the policyholder’s lifetime. This can be used for things like supplementing income during lean times or paying for large expenses.
Like individual life insurance, there are four specific areas relating to business life insurance that we can help you with:
A buy-sell agreement is an agreement that is funded by life insurance, the company, or the individual co-owners to buy life insurance policies on the lives of each co-owner. Thus, if you died, the company or the co-owners would receive the death benefits from the insurance policies on your life.
We can help you utilize the premium financing technique for your company’s insurance policies, which can allow you to borrow money in order to pay for any business insurance premiums. This is vital in the event that you may want to acquire coverage for your company that you might not be able to afford otherwise, and it can also provide tax benefits and more flexibility in managing your cash flow.
Key-man, key person, or key employee insurance is a life insurance designed to safeguard a business in the event of a loss of a crucial entity. Key person insurance usually refers to the owner, the founders, or perhaps a key employee or two. This type of policy allows businesses to prepare for the future, giving business owners and stakeholders a sense of financial wellbeing.
If one or more of these types of life insurance sound like they could be the right fit for you, contact us today to learn more about how we can help you get the coverage you need for you and your family.