Business Life Insurance is a key tool to helping a successful business withstand adversarial times.
Here are just some of the ways life insurance is used in business:
· Buy-Sell Agreements – Used to allow a business partner to buy the other partners piece of the business in the event of a death. This type of policy is effective in a business partner being able to settle with a partners family if that partner passes away.
· Key Person Insurance – Insurance placed on a key individual of a corporation or small business. Death Benefit goes to the company and is used to fund the search and replacement of that key individual as well as any lost revenue due to that key person passing away.
· Split Dollar Arrangement – This is a unique process used as an incentive to key employees where the company pays the premium for a life insurance product that is then owned or transferred to the employee.
While most life insurance policies used in a personal matter grow tax deferred, Life Insurance for business use has completely different tax rules. It is critical to understand these different rules when determining which policy to purchase.
The agents at Lifelong Insurance Agency have specially trained to understand the differences in policies and the impacts to taxes so we can help you make the best decision for your organization and needs. We are here to help, so call us today and take the guess work out of picking a quality Life Insurance Policy.