Protecting Your Business
With life insurance for your business, you can:
- Provide funds to aid in the search for a replacement in the event of death of a key employee
- Provide funds to aid in the continuation of business in the event of death of a key revenue generator – Business Continuation.
- Provide liquidity to purchase the ownership interest of a deceased owner – Succession Planning.
- Create a pool of money that can be used to pay off lines of credit – Debt Protection.
Most commonly, life insurance is purchased to provide payment of a death benefit at the death of the insured(s). However, life insurance has many unique characteristics that may make it an appropriate vehicle for financial planning, including:
- Policy cash values accumulate on a tax-deferred basis.
- Policy death benefits are received income tax-free.
- Policy cash values may be accessed on a tax-advantaged basis.