Key Person & Buy-Sell Arrangements
Key Person
Companies are often dependent on the expertise of a few key people whether it’s a small enterprise or large corporation. Many businesses have been built or remain successful because of certain individuals whose capital, knowledge, or experience makes them a valuable asset of the organization.
Key person insurance is a life &/or disability insurance policy maintained by the organization on the life of an important partner or employee. In the event of death or extended illness to that insured key person, that policy provides funds to partially offset the economic loss to the company. It may also provide:
• Death benefit to the family of the deceased for a reasonable period of time to replace lost income
• A stabilizing factor to keep the business running
• Reassurance to creditors to keep credit channels or agreements in place
Buy/Sell Insurance
If you are a partner in a business or a major shareholder in a company, you may have considered a buy/sell agreement. This type of agreement sets out the direction for what will happen to the partnership or company in the event of death or illness of a partner or major shareholder. Using life insurance is a fundamental part of a buy/sell agreement because the policy provides immediate funding to the surviving partners to buy out the deceased or disabled partner.
Life insurance takes on many forms for a variety of needs/situations for individuals & corporations. Our services include:
• Personal Insurance • Key Person • Buy/Sell • Tax-funding &/or Debt Coverage • Estate Equalization & Enhancement • Succession Planning • Insured Asset Transfer | • Corporate Asset Transfer • Corporate Insured Annuity • Corporate Collateral Loan • Shared Interests • Strategic Retention Insurance • Charitable Giving • Future Generation |