Life insurance for business
Protecting your business
Although often mistakenly viewed as a price only decision, the long-term nature of life insurance necessitates careful consideration in the selection of the insurance carrier, the product type, and the agent or agency to represent you and interact with your heirs.
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.
Covering key employees is key with key person insurance
Your employees help make your business a success. Some employees may be especially key to that success with unique skills, expertise, talent and decision-making power.
Key person life insurance is a powerful way to protect your business from the potential loss of those key employees.
How key person life insurance works
With key person insurance, your business is typically the owner of the policy and pays premiums. You have access to cash values (if you use permanent life insurance) through loans as business needs arise. An income tax-free life insurance death benefit minus any loan amounts (if the employee dies), is paid to your business to help you get through a difficult time after the loss of a key employee.