Business Continuity+ Key Person Protection

Business Continuity Protection

+ Buy-Sell Life Insurance
Any business with two or more owners should consider having a buy-sell agreement in place. Once the buy-sell agreement has been established, businesses must provide a mechanism for funding the transfer of ownership. Buy-Sell Life Insurance funds a buy-sell agreement to buy out an owner who experiences a premature death.

+ Buy-Sell Disability Insurance
Disability Buy-Out (DBO) insurance funds a buy-sell agreement to buy out a totally disabled business owner. This coverage maximizes the financial return when a business is transferred, while minimizing tax liability.

Key Person Protection

+ Key Person Life Insurance
Key Person Life Insurance offers a financial cushion if the sudden loss of a certain individual would have a profoundly negative effect on the company’s operations. The death benefit essentially buys the company time to find a new person or to implement other strategies to save (or shut down) the business.

In a small business, the Key Person is usually the owner, the founders, or perhaps a fundamental employee or two. The main qualifying point is whether the person’s absence would cause major financial harm to the company. If this is the case, Key Person Life Insurance is worth considering.

+ Collateral Protection
Lenders may require an insurance policy on the lives of Key Persons. The death benefit secures the bank in the event of the death of someone key to the success of the business.