Life Insurance for Business Owners

Life Insurance for Business Owners

 Set-up private, self-funded, tax-free retirement plan for owners and/or key employees, Establish inexpensive financial windfall to replace a key employee’s untimely passing.

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    Life insurance for business owners can ultimately decide whether a business thrives or dies along with a partner's death. Think for a moment, how would you buy out your business partner's spouse (or family) if they passed away? Do you have the ready cash on hand to pay out your partner's share in the business?  Or... would you be stuck having half your business owned by a spouse of your partner who knows nothing about the business nor has the skills to contribute?  Solution...?
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    Many partnerships have a "buy sell" agreement established. Trouble is, many of the agreements are not funded. By funded, we mean having the liquidity to pay the survivor cash to repurchase the deceased's shares.
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    ACTION TO TAKE: Purchase life insurance policies on each partner to inexpensively fund a "buy sell" agreement. A "buy sell" agreement funded with term life insurance will protect the business from the financial devastation caused in the event of a partner’s death or disability. It is easy to establish and is the most inexpensive financial solution to a potential business-ending problem. If you have an unfunded "buy sell" agreement, then we recommend you fund it with life insurance. 
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    Purchase key man (key person) life insurance to protect the financial health of the business. Do you have one or more employees, that if they passed away, would crush your business results? A key man life insurance policy is highly recommended. Use the life insurance proceeds to recruit and perhaps offer a bonus for an established executive to join your company to help stabilize the loss of your key employee. 
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    Consider setting up private, self-funded, tax-free retirement plan for owners and/or key employees. You select which employees to reward. To retain critical employees, we suggest you implement an Indexed Universal Life tax-free retirement plan for key employee(s) to create a "golden handcuffs" . Tax-free growth, tax-free withdrawals, flexible, deposits annually up to 1M.  Highlight: You decide who participates, not the IRS.  You decide how much to fund, not the IRS. 

Jack's Life Insurance Tip for Business Owners:

Running a business is beyond a "9 to 5" endeavor. It is not a job it is a lifestyle. To be successful, business owners know they must always focus on every detail, each and every day.  Let's be honest, life insurance is never an exciting topic. However, it is often the difference between a business financially surviving the death of a partner or, sadly, having to shutter its doors. Your partner wouldn't want your dreams to not be realized. Give me a call today. Let's discuss your key man (key employee) and buy sell options today. I will run the numbers for you. The call and the advice are always free.  1.800.277.3098

Did you know?

Depending on your age you can purchase up to $1,000,000 in life insurance without a medical exam

  • Group Life insurance
  • Group Disability insurance
  • Key Person protection
  • Golden Handcuffs

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