In almost every business, there are people who are a key element to the success of that business, and there may be more than one person that fits this description. These are people who, without their presence, the company would no doubt suffer financially, at least temporarily, if not permanently. Maybe it's a business partner, or a top management person. Or, maybe it's someone who has special favor with another company, and without that vital connection, your business position would drastically change for the worse. Sometimes, business sustaining contracts hang in the balance.
Key-man life insurance is the way to insulate your company from such tragedies. Spirit Financial Concepts is experienced in dealing with this kind of strategic planning. We can help you find the right coverage, for the right length of time, so that you can have the peace of mind that comes with knowing that you're protected against such life changing events, without it affecting your bottom line.
Key-Person Life Insurance is extremely cost effective, because you're only paying for the cost of insurance, and you likely won't have to pay taxes on any death benefit proceeds your business receives.
Does your business have a buy-sell agreement in place? This is referred to as a Succession Plan. In other words, a planned succession of events that would take place in the event of the death of a co-owner, a business partner, or an investor, assuring a smooth transition in the midst of these difficult times.
If you share ownership of your business, it's likely that at some point, one of you will have to buy the other(s) out. Buy-Sell Agreements funded with life insurance offer several options for continuing your business in a variety of situations. They also create a binding agreement between the buyer and the seller, and lock in a purchase / sale price.
Buy-Sell Agreements protect the value of your business by helping the remaining owners keep control of the business. This assures the transfer of ownership in an orderly fashion, provides stability for customers, employees, creditors, and investors.
There are different buy-sell agreements, based on whether your business is a C-Corp, an S-Corp, a Partnership, an LLC, or a Sole Proprietorship.
Typically, there are three options for a buy-sell arrangement:
Each has specific advantages and disadvantages in regard to tax issues, heirs, surviving owners and the business itself. What each option has in common is Anchor Tulsa! We have the expertise to walk you through the options available to you, and the products that can fulfill your needs.
For a detailed analysis of all your "Business Life Insurance" needs, please contact our specialists today for a non-binding consultation.
Contact us by phone, or use our online Contact Form.
We also consult on the following types of coverage:
Spirit Financial Concepts is a member of the National Association of Health Underwriters.