what you need to Know!

Protection for Businesses We understand the unique challenges that businesses face. The business protection plans are designed to safeguard business partners, business executives, top employees, key employees, assets and operations, providing peace of mind and ensuring your business thrives even in uncertain times.

Business protections

"Indexed Universal Life (IUL) Insurance offers executive bonus plans and key employee insurance to help businesses attract, retain, and reward top talent: "

Business continuity or future security

Key person insurance (when is IUL) offers a cash value and a death benefit that can help cover financial losses that occur at the death of a key person. This helps assure continuity of the business. Replacing a key person takes time and money − and could cost the business valuable clients during the transition. Key person IUL insurance offers a cash value and a death benefit that can help cover financial losses that occur at the separation or death of a key person. This helps assure continuity of the business for employees, customers and creditors.

Executive bonus plans

These plans use life insurance to provide a bonus to company executives and top employees. The company pays the premium, and the executive receives the bonus as a tax-advantaged benefit. The executive can name the beneficiary of the policy's death benefit, can receive financial support in the event of a deadly illness, and can access the cash value as loans, withdrawals or supplementing retirement income. The company can choose which top employees to include, and the plan can be customized for each participant. Using life insurance to fund nonqualified deferred compensation arrangements can be a powerful tool to help attract, retain, or reward top talent.

Key person IUL plans

Key employee life insurance can help protect against the loss of a critical employee's contributions and expertise. "Replacing a key person takes time and money − and could cost the business valuable clients during the transition. Key person IUL insurance offers a cash value and a death benefit that can help cover financial losses that occur at the separation or death of a key person. This helps assure continuity of the business for employees, customers and creditors. An IUL policy includes living benefits to help in the event of a qualifying deadly illness for a key employee. A policy can also include a rider for disability coverage to help if a key employee is disabled. Hence, a Key person IUL insurance helps safeguard a small business if an imperative/key employee dies, as well as help both the business and the key employee if the key employee experiences a qualifying deadly illness or becomes disabled. Therefore taking out a key person policy on your top employees thereby affirms their value to your business, strengthening the relationship."

Benefits of key person IUL insurance to the business

- The cash value and death benefit can be used to recruit and develop a replacement for the previous key employee

- Coverage is a business asset that enhances your company’s creditworthiness for commercial borrowing

- The policy’s cash value may be available to your business through a withdrawal or loan if needed

- The business pays the premiums to its advantage, and they are non-deductible

- Key person IUL insurance offers a cash value and a death benefit that can help cover financial losses that occur at the death of a key person. This helps assure continuity of the business

- Under a key person IUL insurance policy, the business owns the policy, pays the premiums and is the beneficiary. If a key person dies, the business then collects the accummulated cash value and death benefit. That money can be used to help a business replace lost revenue as they search for a replacement.

What is key person insurance? "While all employees contribute to the success of a small business in some way, there are those employees that just can't be replaced. That’s why it’s important to have an insurance policy that will help keep a business afloat even without its most valuable employees. Key person insurance is a life insurance policy that a business takes out on its most valuable employee or employees. An IUL policy includes living benefits to help in the event of a qualifying deadly illness for a key employee. A policy can also include a rider for disability coverage to help if a key employee is disabled.

Key person insurance helps safeguard a small business if an imperative employee dies, experience a qualifying deadly illness or becomes disabled. "

What makes a key person?

"For key person insurance, a business focuses on the employees it considers indispensable. A key person is often the business owner but could also be someone who has a highly specialized role, such as responsible for bringing in a large share of sales. Such employees can be extremely difficult, and expensive, to replace, and their loss would resonate throughout the entire business. Sole proprietors may also opt for key person insurance to protect family members who will inherit their business. Under a key person life insurance policy, the business owns the policy, pays the premiums and is the beneficiary. If a key person dies, the business then collects a death benefit, and cash value in case of an IUL. That money can be used to help a business replace lost revenue as they search for a replacement. Keep in mind that some lenders mandate that businesses purchase key person insurance to receive financing."

How much key person insurance do you need?

There’s no exact formula for determining how much coverage is necessary to insure a key person, but thinking about how much it would cost to replace this individual is a good place to start. When coming up with this figure, it is helpful to consider the percentage of the key person’s contribution to the company’s bottom line, as well as his or her current salary plus other investments on him or her by the business, which companies will generally multiply by a factor of five to seven. "An Indexed Universal Life (IUL) insurance policy offers a cash value fund that the business can take advantage of, and also pays a death benefit if the key person dies while the policy is in force. Key person insurance can help provide a financial lifeline for your business at the separation or loss of a key employee. You can easily understand the coverage your business needs, and the options you have to protect it."

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