Wealth &
Protection Planning

Business Life Insurance

There are several benefits to both employees and employers when life insurance is used within business planning strategies.  The primary purpose of life insurance is to provide death benefit to a beneficiary in the event the insured dies.  This death benefit can be used to help ensure the continuity of your business or be used to transfer business interest. 

  • Key Person Life Insurance - You purchase a life insurance policy on the life of a key employee, naming your business as the beneficiary.  If the key employee dies, the policy proceeds are paid to the business, generally tax-free, to help keep it going while you seek to fill the void left by the deceased employee. 
  • Buy-Sell Life Insurance - Life insurance is often used to fund a buy-sell agreement, one of the most popular business succession planning strategies.  A buy-sell agreement involves one party buying a deceased business owner's interest in the business at a certain price, and another party, usually the deceased owner's estate or heirs, selling the interest at that price.  By entering into a buy-sell agreement, you can help ensure a smooth transition of ownership, with minimal disruption to the day-to-day activities of the business.

Contact a STRIVE Wealth Advisor for more information about business life insurance. 

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