Sentences with phrase «insurance for the key employees»

Businesses also depend on life insurance for their key employees or partners that would represent a financial loss to their company he they suddenly passed on.

The risk of disability at old age is actually higher than death at certain ages; to achieve adequate protection, most companies should secure both key man life and disability insurance for their key employees and / or executives.

What we are discussing here is not group life insurance but more specifically life insurance as it applies to the owners of each business and life insurance for the key employees.

In this article we've provided 4 easy steps to buying life insurance for a key employee, and real - life example of a business we recently helped.

Please note: When buying life insurance for a key employee, the employee does not need to show an ownership share in the business, but if they do, your business may also want to consider purchasing life insurance for a Buy - Sell Agreement.

You may want to also consider keyman insurance for key employees.

Not exact matches

The death benefit offered through «Key Person Insurance» helps ensure that should a «key person» within a company pass away, there will be continuity of the business for its employees (and customerKey Person Insurance» helps ensure that should a «key person» within a company pass away, there will be continuity of the business for its employees (and customerkey person» within a company pass away, there will be continuity of the business for its employees (and customers).

All told, these three laws contain eight different small business tax cuts, including the exclusion of up to 75 % capital gains on key small business investments, a tax credit for the cost of health insurance for small business employees, and new tax credits for hiring Americans who had been out of work for at least two months.

You might also want life insurance to cover college expenses for your kids if you die, or pay off your mortgage at that point, or to pay for funeral expenses, or to protect the income your business gets from a key employee.

It may be used as a funding mechanism for your buy - sell agreement and as business interruption insurance to pay the business for interruptions caused by the death of key employees.

Examples of these risks, uncertainties and other factors include, but are not limited to the impact of: adverse general economic and related factors, such as fluctuating or increasing levels of unemployment, underemployment and the volatility of fuel prices, declines in the securities and real estate markets, and perceptions of these conditions that decrease the level of disposable income of consumers or consumer confidence; adverse events impacting the security of travel, such as terrorist acts, armed conflict and threats thereof, acts of piracy, and other international events; the risks and increased costs associated with operating internationally; our expansion into and investments in new markets; breaches in data security or other disturbances to our information technology and other networks; the spread of epidemics and viral outbreaks; adverse incidents involving cruise ships; changes in fuel prices and / or other cruise operating costs; any impairment of our tradenames or goodwill; our hedging strategies; our inability to obtain adequate insurance coverage; our substantial indebtedness, including the ability to raise additional capital to fund our operations, and to generate the necessary amount of cash to service our existing debt; restrictions in the agreements governing our indebtedness that limit our flexibility in operating our business; the significant portion of our assets pledged as collateral under our existing debt agreements and the ability of our creditors to accelerate the repayment of our indebtedness; volatility and disruptions in the global credit and financial markets, which may adversely affect our ability to borrow and could increase our counterparty credit risks, including those under our credit facilities, derivatives, contingent obligations, insurance contracts and new ship progress payment guarantees; fluctuations in foreign currency exchange rates; overcapacity in key markets or globally; our inability to recruit or retain qualified personnel or the loss of key personnel; future changes relating to how external distribution channels sell and market our cruises; our reliance on third parties to provide hotel management services to certain ships and certain other services; delays in our shipbuilding program and ship repairs, maintenance and refurbishments; future increases in the price of, or major changes or reduction in, commercial airline services; seasonal variations in passenger fare rates and occupancy levels at different times of the year; our ability to keep pace with developments in technology; amendments to our collective bargaining agreements for crew members and other employee relation issues; the continued availability of attractive port destinations; pending or threatened litigation, investigations and enforcement actions; changes involving the tax and environmental regulatory regimes in which we operate; and other factors set forth under «Risk Factors» in our most recently filed Annual Report on Form 10 - K and subsequent filings by the Company with the Securities and Exchange Commission.

Very few business are in the business of losing money and if they are spending $ 7,000 - 12,000 on health insurance per employee and they are faced with the increased cost of health insurance they will raise your out of pocket or pay the fine and dump the coverage except for only key personnel.

(Small businesses may wish to consider purchasing life insurance policies for key individuals, such as an owner or top employee, to help prevent financial distress if that person were to die.)

While key employee life insurance is usually purchased for high - earners, you should note that the face value of the policy is often limited to a multiple of the insured's income, such as 10X.

Funding a split dollar plan is a way to reward a key employee while accruing cash value in a whole life insurance policy that can serve as a ready source of funding for the employer.

You might provide a basic group term policy to all of your full - time employees and / or fund a bonus plan for key executives with cash - value life insurance.

Sarah Henchoz Qualified: 2001 Made partner: 2012 Key cases: Working for a global bank on employment litigation arising out of the Forex scandal; advised a large insurance company in relation to what was claimed to be the largest whistleblowing case brought by two of its employees.

Robert Allen Qualified: 2004 Made partner: 2015 Key cases: Advising a retail bank in relation to litigation and regulatory issues concerning payment protection insurance and related consumer credit claims; acting for an academic institution defending claims brought by a former employee under the Data Protection Act 1998.

Erie Family Life can help with life insurance solutions for funding business continuation plans, key person protection and even employee benefits like deferred compensation and executive bonus plans.

Life insurance for businesses is designed to cover any financial losses that may result in the death of you, your partner, or a key employee.

Typical reasons for buying key person insurance include: key employee insurance, business loan indemnification, funding buy - sell agreements and executive benefits.

Typically designed so that the surviving business partner would have the money to purchase the company interests, life insurance for businesses can also be structured as «key person insurance,» where if a key employee dies the business owner will receive a benefit to help offset the financial impact of losing the key employee.

For key person insurance policies, a company purchases a life insurance policy on its key employee (s), pays the premiums and is the beneficiary of the policy.

Representing over 75 top companies, we shop the marketplace to uncover the best life insurance policies for your key employees and executives assuring your business is protected at the absolute best value.

Key man insurance is a form of term life insurance, as most policies of this type are only valid for as long as the employee remains with the company.

Therefore, if the company purchases a life insurance policy on the key employee, the proceeds of the policy can be paid out to the company in order to compensate for this lost income.

Key employee life insurance does not pay out for a disability, so you are leaving your business vulnerable to a potential disability, which is statistically more likely to occur than death.

Nationwide Future Executive VUL is a variable universal life insurance product designed for business clients who need to fund executive benefit plans for their key employees.

Nationwide Future Corporate VUL is a flexible premium variable universal life insurance policy that is designed for use with business clients to informally fund executive benefit plans for their key employees.

With an executive bonus plan, you're using a compensating method for specific employees by paying the life insurance policy premiums on the key employee's life.

For example, if a key person is currently 45 years old and the expected retirement for that employee is age 65, then 20 year term life insurance would be appropriaFor example, if a key person is currently 45 years old and the expected retirement for that employee is age 65, then 20 year term life insurance would be appropriafor that employee is age 65, then 20 year term life insurance would be appropriate.

The goal when valuing a key person for life and disability insurance is to get the correct amount of coverage based on the specific needs of the business but that also corresponds to the realistic loss associated with the death or disability of the key employee from the insurance company's viewpoint.

The cost associated with securing a policy for key man insurance is very small relative to the costs and damage without it & the potential benefits a company receives if a key employee dies or is disabled.

For an employee who owns no equity in the business, the maximum amount of key employee life insurance a business can buy is 10 times the employee's annual income.

The bottom line: since life insurance policy proceeds are generally non taxable to the beneficiary, no business should be writing off premiums for life insurance paid on key employee or key executive policies.

The «premium bonus» plus the «tax bonus» can result in low, or no personal expense for the key employee's own life insurance.

Once the need for key employee life insurance has been established, there are a few questions that should be answered before you begin to shop for a policy.

Once the need for key employee life insurance has been established, there are a few questions which should be answered before you begin to shop for a policy.

For an employee of the business who is also an equity owner, the maximum amount of life insurance a business can purchase is 10 times the key person's income, plus the fair market value of their ownership interest in the business.

Furthermore, key man insurance and other employer - owned life insurance is specifically covered under Section 1.264 - 1 (a) and states the premiums paid for life insurance on the life of any officer, employee, or person financially interested in a business carried on by the taxpayer are not deductible where the taxpayer is directly or indirectly a beneficiary of the policy.

Key man life insurance is necessary even if your business plans to shut its doors after the loss of a key person; the money can be used to take care of closing costs, investor payoffs, and severance pay for employeKey man life insurance is necessary even if your business plans to shut its doors after the loss of a key person; the money can be used to take care of closing costs, investor payoffs, and severance pay for employekey person; the money can be used to take care of closing costs, investor payoffs, and severance pay for employees.

The company's cost for the plan is minimal and may be funded with a cash value life insurance policy that is purchased by the company for the benefit of a key employee.

Key man insurance provides the funds for the company to buy back the stock from the employee's estate.

The 25 year term life insurance policy is also used for key employee life insurance.

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(Small businesses may wish to consider purchasing life insurance policies for key individuals, such as an owner or top employee, to help prevent financial distress if that person were to die.)

If you own a business and you are using the policy to fund a buy sell agreement or for key employee insurance again 20 years is a reasonable period of time to look ahead.

Funding a split dollar plan is a way to reward a key employee while accruing cash value in a whole life insurance policy that can serve as a ready source of funding for the employer.

It is common for companies to own life insurance policies on their employees, especially key employees to the company to protect against the cost of replacing them if they were to die unexpectedly.

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