Insurance Options for Small Business Owners
Risk vs. Rewards
Well intended laid out business plans, can with little warning, lay havoc to your business's immediate cash flow needs.
- How can you address and plan for such financial risk, when you may not even realize it exist?
- It comes down to revisiting the Goals you've put in place for your Business to achieve.
Your Business Goals
In order to achieve your Business Goals, what Risks do you want to transfer to Insurance?
What risks do you accept because the cost of eliminating them completely is too high?
Key Benefits insurance Products can Provide
Take a look at some key benefits that Insurance products can offer your business & your employees:
Cash in your business:
the cash growing in Whole Life Policies often receive substantial protection from creditors
Business Overhead Expenses:
Disability Insurance can reimburse business owners, for existing overhead expenses incurred, if the owners become disabled
Business Loan Protection with Whole Life Insurance:
Creditors may require the purchase of Collateral Life Insurance to protect their interests.
A business owner may have a desire to have business debts fully repaid in the event of death to minimize business's financial risks
Group Life & Disability Insurance for Employees:
attract talented employees
Qualified Sick Pay Plan "QSP" can be funded with Disability Income Insurance
included in QSP is Supplemental Disability Income Insurance that augments Group Disability Insurance and covers any gaps
Key Employees - tailor benefits for your Key Employees:
Split Dollar Compensation Plan
- Executive Bonus Compensation Plans - also called Double Bonus Plan
immediate tax deduction for employer and
provides permanent Life Insurance that builds cash value over time for key employees
Buy/Sell Agreements with your Partners:
Properly funded with the current value of the business
Minimize Estate Taxes for your Beneficiaries:
with sufficient Life Insurance in place there should be additional liquidity to pay estate taxes