Key Person Life Insurance
Key Person Life Insurance is designed to protect your business should one of the main partners pass away unexpectedly. This policy will name your business as the beneficiary and premiums are billed under the business name. Benefits and premiums are tied to the value you have established through financial records. Benefit payments are made to the business to help minimize financial loss should your business lose the insured (key personnel) due to death.
Business Overhead Disability
A Business Overhead Disability policy prevents businesses from going under from regular overhead expenses while the business owner is unable to work and run the business due to disability. These types of policies will typically pay for things like employee salaries, rent, and utilities, among other expenses.
Buy-Sell Agreements
Buy-Sell Agreements are intended to protect a business after the death of a key employee. Buy-Sell Agreements (also known as Continuation Agreements) are tied to and funded by life insurance policies. The agreement sets out the details of the transfer of business interest by the keyman (or his/her estate) upon a certain triggering event- usually death, disability or retirement. The surviving or continuing business owner or partner can rest assured knowing that they can purchase the keyman’s share without interference from other survivors of the keyman and his/her estate.
Additional individual products to pair with your group plan for high incomes
Usually group long-term disability insurance and supplement life insurance benefit packages only cover a fraction of an executive’s high income. Providing a customized supplemental life insurance and/or disability option to key employees is an important part of the Executive Benefit Package. Plans may be structured to avoid taxation of benefits at the time of claim.
