Protect your business, your partners and your family if something happens to you, and build tax-advantaged retirement income outside the company.
Every business is different. These are the strategies owners ask about most. A short review shows which ones fit you.
The business owns a policy on the people it can't run without. If one dies, the company gets cash to keep going.
Your buy-sell agreement says the surviving owners buy out a deceased partner's family. Life insurance supplies the money.
The business pays the premium on a policy you or a key employee owns. The bonus is generally deductible to the business as compensation.
Indexed Universal Life grows cash value tied to a market index, with a 0% floor so you don't lose ground in down years.
Turn the money from selling your business, or from your SEP, SIMPLE or Solo 401(k), into protected growth or income for life.
Your family depends on income that comes from the business. Make sure the house, the debts and the kids are covered no matter what.
For high earners who have maxed out their retirement plans, or who want money growing outside the business, these features add up.
Cash value in an IUL and money in an annuity grow without a tax bill each year.
Life insurance proceeds are generally paid to beneficiaries free of income tax.
Withdrawals up to your basis, then policy loans, can supply income without adding to your taxable income, as long as the policy stays in force and isn't a modified endowment contract (MEC).
Unlike an IRA or 401(k), you decide when, or whether, to take money out.
Executive bonus premiums are generally deductible to the business as compensation, and taxable to the employee.
Annuity growth is taxed only when you withdraw it, so you can take income in lower-income years after you sell or retire.
| If this sounds like you… | Start by looking at |
|---|---|
| The business couldn't run without me (or one key person) | Key person coverage |
| I have one or more partners | Buy-sell funding |
| The bank or SBA loan requires life insurance | Coverage assigned to the lender |
| I want to keep my best people from leaving | Executive bonus with a vesting schedule |
| I earn well and have maxed out my retirement plan | IUL for tax-advantaged retirement income |
| I'm selling, retiring or closing my company plan | Fixed index annuity with lifetime income |
| My family relies on my income and we have a mortgage | Term or mortgage protection |
Tell me a little about your business and I'll show you where you're protected, where you're exposed, and which strategies are worth a closer look.
Takes about a minute. I'll reach out within 24 hours.
Willie Ashford III, Licensed Insurance Agent, will reach out within 24 hours. Want to skip the wait? Book a time now.
Usually not for key person or buy-sell policies the business owns. Executive bonus premiums are generally deductible to the business as compensation and taxable to the employee who receives them. Your CPA should confirm the treatment for your situation.
It depends on the purpose. Key person policies are typically owned by the business. Buy-sell policies can be owned by the business or by the partners on each other. Annuities should generally be owned by you personally, because an annuity owned by a business entity usually loses its tax deferral.
Yes. For employer-owned life insurance, federal rules require written notice to the employee and the employee's written consent before the policy is issued, plus annual reporting. If those steps are skipped, part of the death benefit can become taxable. I walk you through the paperwork.
Withdrawals up to what you paid in, then loans against the cash value, aren't treated as taxable income as long as the policy stays in force and isn't overfunded into a modified endowment contract (MEC). If a policy with loans lapses, the gain can become taxable, so it has to be designed and monitored properly.
The review is free. Premiums depend on age, health, the amount of coverage and the strategy. Many owners start with an amount that fits comfortably in their budget and add more later.
For buy-sell agreements, executive bonus and split-dollar plans, yes. I work alongside your attorney and CPA. I handle the insurance side, they handle the legal agreement and the tax filing.
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