Key Person insurance is a type of life insurance that a business takes out on a team member whose contribution is vital to the success of the company. The business owns the policy and pays the premiums. If the insured/key person passes away, the business receives the death benefit. This strategy helps ensure that the company can survive and continue operations if a vital team member unexpectedly dies.

An Executive Bonus Plan is a strategy that can be used by a business owner to retain and reward their top employees, using a life insurance policy. The employee owns the policy, which includes any available cash value, their family is financially protected in case something happens, and the company pays the premiums as a “bonus” for the employee. Because the premium payments are considered a bonus, the premium payments are considered taxable income to the employee. This strategy may be more cost effective to the employer that is setting up a full retirement plan. The employer has the discretion to choose who receives this benefit.

A buy-sell agreement is an important tool used in business succession planning. When life insurance is used to fund a buy-sell agreement, it typically means that a life insurance policy is purchased on the lives of each owner. If one owner dies, the surviving owners receive the death benefit proceeds to purchase the deceased owner’s business interest. This legally binding contract lays the foundation for a smooth transfer of ownership. It prevents disruptions of business operations and guarantees that the deceased owner’s heirs or estate will receive a fair price for the business interest.

Yes. We can offer retirement plans for businesses with 1-100 employees and our policies satisfy mandatory state requirements. The annuities we provide have no third-party administrators, which means that there are no administration fees or asset management fees. Matching options are available but not required and the employers may be eligible to receive tax credits for start-up costs and contributions. Important note: You should always get guidance from your CPA when it comes to anything related to taxes.

Yes. As a small business owner, you have access to the cash value accumulated in a permanent life insurance policy. Cash value can be accessed through policy loans or withdrawals. The cash value can be used to fund business needs such as, working capital, seed money to start a new venture, acquisitions and expansion. Always consult with your tax advisor to fully understand the tax implications of accessing or surrendering the cash value.

Yes. We offer individual term and permanent life insurance policies for both you and your employees. These policies include Living Benefits, which allow the insured person to access an insurance policy’s death benefit while they are still alive. Living Benefits can provide financial support to families and individuals when they are facing serious health challenges. The benefits can be associated with terminal, chronic or critical illnesses. It is important to note that certain circumstances must be present to qualify for living benefits and they are not suitable unless you also have a need for life insurance.

Yes. As a Solopreneur, you most likely do not have access to a company retirement plan like a 401k. A SEP (Simplified Employee Pension) IRA annuity plan is designed for self-employed individuals and small business owners. Advantages to this type of plan include higher contribution limits, tax-deferred growth, tax-deductible contributions and the flexibility to change the amount you contribute each year. You should always get guidance from your CPA when it comes to anything related to taxes.

Yes. If you have a retirement plan (401k, 403b, 457, TSP) from a previous employer, you are most likely still paying management fees to keep it there. It can be transferred to a fixed indexed annuity where your money can continue to grow and be safe from market volatility. As your guide through this process, I can help you avoid costly mistakes and penalties when transferring funds between accounts; however, you should always get guidance from your CPA when it comes to anything related to taxes.