Implementing strategies that first and foremost, facilitate the continuation and the vitality of your business is most important; followed by programs which facilitate the financial security and a more comfortable retirement such as qualified and non-qualified retirement programs as well as executive benefit arrangements for those special, key employees.
No matter what your business, a well-conceived insurance and benefits program is essential. Now it may be the largest asset in your estate. In other cases, the business may be worth very little without the proprietor or partner.
Why are these agreements so important? Our agents are licensed professionals, who have extensive product knowledge and can help you make important decisions about your insurance coverage. A Salary Deferral Plan can mirror a k plan in that the executive makes contributions to the plan while the employer may match those non-qualified contributions.
Mail in the completed application form along with any additional corporate documents or articles requested by the insurance company. Applying for Key Man life insurance is not much different from applying for life insurance coverage as an individual, but the insurance company will require specific information about your business in addition to details about the employee to be insured.
They function in much the same way as medical HMOs and may be less expensive than traditional plans. Most plans do not cover orthodontics. Any business owner who wants to attract and retain key employees. Your tax professional will be able to help you understand the financial ramifications of insuring one of your employees.
Business Succession for Families can be a bit more complex and may require consideration of how to equalize inheritance among heirs not involved in the business. Protects your investment in employees who are crucial to your business.
Determine the amount of life insurance necessary on that employee.
Deferred Compensation Plans including SERPs This is a selective employee benefit that allows business owners to help key employees defer income and the taxes due on that income until a later date, usually retirement.
Since the business owner can decide how much to contribute each year, this type of plan is often the answer for businesses that may want to adjust their contribution based on the health of the business.
Business Loans Provides insurance protection to pay off business or personal loans used for business purposes. When the employer makes the contributions to the plan, they are non-deductible. Decide which company you feel offers the best life insurance policy at a reasonable rate that fits within the confines of your available budget.
See individual policies for specific coverage details.
In addition, the policy can include a rider to cover longer term care expenses on a tax advantaged basis.Life insurance planning can help with transitioning ownership if it ever becomes necessary and help attract and retain key employees to protect the future of your business.
It can also help you plan for your own retirement. Business owners can use life insurance to protect their businesses and provide important benefits to their employees. Without proper planning and funding, many businesses fail to continue to the next generation.
Here are 4 ways life insurance is used in business planning: 1. Key Person. Consistency in life is a good habit and one Convenient Insurance believes in. Consistency at Convenient Insurance means that each person/business is treated individually, with the greatest attention to detail. Quaestor Services insurance agency business plan executive summary.
Quaestor Services is a start-up sole proprietorship combining insurance product sales and small business bookkeeping services/5(12). It is never too early to start planning your exit strategy.
With proper planning and our process of small, manageable steps, you can retire when and how you want while ensuring that the business you worked hard to build continues to benefit you and your family for years to come. We can help you.
Small business life insurance from State Farm can help you address key planning issues such as business continuation, employee benefits and retention, and more.Download