Sentences with phrase «key person life insurance on»

All to often a business will purchase key person life insurance on a valued employee, but will neglect to consider what might happen if that key employee were to suffer a disability.

It is very common for a lender or bank to require key person life insurance on anyone that is vital to the life of your company.

Susan Swanson is the sole owner of a small business and buys key person life insurance on Chris Smith, who has been the company's leading salesperson for several years.

Not exact matches

On the other hand, if your company decides to sell the key person life insurance policy, you may have to pay taxes, depending on the size of the settlement, cash value of the policy, and the amount that's been paid in premiumOn the other hand, if your company decides to sell the key person life insurance policy, you may have to pay taxes, depending on the size of the settlement, cash value of the policy, and the amount that's been paid in premiumon the size of the settlement, cash value of the policy, and the amount that's been paid in premiums.

... when your company provides a key person with cash value life insurance, in addition to the benefits discussed above, you will simultaneously be acquiring assets on your balance sheet in the same way that you'd acquire business equipment or real estate.

Key Person Insurance: An insurance policy placed on the life of an important person within a coPerson Insurance: An insurance policy placed on the life of an important person within aInsurance: An insurance policy placed on the life of an important person within ainsurance policy placed on the life of an important person within a coperson within a company.

Key person life insurance policies are taken out by companies on their employees, with death benefits that are paid to the company, rather than to the insured person or to their estate or heirs.

Structuring the life insurance on a key person in such a way as to incentivize the key person to remain at the business until fully vested in the life insurance policy is a fantastic way to promote strong employee loyalty.

I found out a company still has a million dollar life insurance policy on me and I was fired 6 years ago — how can I report this — I am no longer a key person to this business and the business has been sold --

Insurance owned by the business on the owner or on another key person's life is an important part of a business plan.

The key person being insured must provide written consent for the company to own a life insurance policy on him / her.

This is because one of the key factors that life insurance premiums are based on is a person's age.

Key Person Life Insurance — Where a company buys a life insurance policy on key or vital employees integral to the maintenance and survival of the busineKey Person Life Insurance — Where a company buys a life insurance policy on key or vital employees integral to the maintenance and survival of the businLife Insurance — Where a company buys a life insurance policy on key or vital employees integral to the maintenance and survival of the Insurance — Where a company buys a life insurance policy on key or vital employees integral to the maintenance and survival of the businlife insurance policy on key or vital employees integral to the maintenance and survival of the insurance policy on key or vital employees integral to the maintenance and survival of the businekey or vital employees integral to the maintenance and survival of the business.

And on certain life insurance policies, such as those used to fund buy sell agreements, irrevocable life insurance trusts or key person business insurance, a better rate class may mean thousands of dollars in savings.

Key Executive / Person Insurance Life insurance purchased by a business on a valuable employee (or owner - employee) to indemnify the business against the potential financial loss that would result in the event of that individualInsurance Life insurance purchased by a business on a valuable employee (or owner - employee) to indemnify the business against the potential financial loss that would result in the event of that individualinsurance purchased by a business on a valuable employee (or owner - employee) to indemnify the business against the potential financial loss that would result in the event of that individual's death.

Please note if you are purchasing life insurance on a key employee or individual, this is commonly referred to as «key man life insurance» or «key person life insurance».

There are certain criteria that need to be met, but life insurance on key persons and buy - sell agreements are common ways to mitigate risk when owning a business.

With key man insurance, the company buys a life or disability policy on the life of the key person.

The ProVider Plus is a great option for key person disability insurance due to Guardian Life's focus on providing one of the best DI policies for executives.

Key man insurance, commonly referred to as key person insurance, is essentially life and / or disability insurance purchased by a business on the life of a key employee or business owner to offset financial losses that would arise from his or her death or extended illneKey man insurance, commonly referred to as key person insurance, is essentially life and / or disability insurance purchased by a business on the life of a key employee or business owner to offset financial losses that would arise from his or her death or extended illnekey person insurance, is essentially life and / or disability insurance purchased by a business on the life of a key employee or business owner to offset financial losses that would arise from his or her death or extended illnekey employee or business owner to offset financial losses that would arise from his or her death or extended illness.

A simple application for insurance on the life of the key person is completed and submitted to the insurance company.

For years, companies both large and small have purchased and owned both key man life and key man disability insurance policies on the lives of their strategic people so that business continuity can be maintained in the unforeseen circumstances of a death or disability.

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.

On the other hand, if your company decides to sell the key person life insurance policy, you may have to pay taxes, depending on the size of the settlement, cash value of the policy, and the amount that's been paid in premiumOn the other hand, if your company decides to sell the key person life insurance policy, you may have to pay taxes, depending on the size of the settlement, cash value of the policy, and the amount that's been paid in premiumon the size of the settlement, cash value of the policy, and the amount that's been paid in premiums.

Once called «Key Man Life Insurance», a key person insurance policy is bought by the business on an important employee and payable to the compaKey Man Life Insurance», a key person insurance policy is bought by the business on an important employee and payable to theInsurance», a key person insurance policy is bought by the business on an important employee and payable to the compakey person insurance policy is bought by the business on an important employee and payable to theinsurance policy is bought by the business on an important employee and payable to the company.

You can purchase more coverage with term life, which is beneficially when covering a large mortgage on your home, protecting the primary wage earner of the household, key person life insurance, or covering a small business loan.

By offering a death benefit — and in some cases, a cash value account you can access in an emergency — key person insurance can help make sure that, for your business, life will go on.

One of the other key factors that can have an effect on the amount that a person pays for life insurance coverage is whether or not they are a smoker.

An employer may take out a key person insurance policy on the life or health of any employee whose knowledge, work, or overall contribution is considered uniquely valuable to the company.

A business owner purchasing life insurance on a key person is common.

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 goal when valuing a key person for life insurance is to get the correct amount of coverage (not under - insured or over-insured) based on the specific needs of the business.

To secure these much needed funds, lenders, as well as investors, will normally require the business to purchase key man life insurance on their key people.

The amount of life insurance you can buy on a key person depends on their «value».

To secure key man insurance, the business must apply for a life insurance policy on the life of the key person.

Key Person insurance is life insurance purchased by the company on the life of an employee or employees whose loss would have adverse effects on the company.

With both key man life and disability insurance, the business secures the policy on the life of the key person.

It's insurance coverage on the life of a key person of a business.

This policy provides business life insurance on one key person in a 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.

I found out a company still has a million dollar life insurance policy on me and I was fired 6 years ago — how can I report this — I am no longer a key person to this business and the business has been sold --

Note: The company should consult with its tax advisor for deductibility of premiums paid on key person life insurance.

Structuring the life insurance on a key person in such a way as to incentivize the key person to remain at the business until fully vested in the life insurance policy is a fantastic way to promote strong employee loyalty.

Buying life insurance on the life of such a person is known as key man, or key employee, life insurance.

Life insurance only pays benefits on the death of the insured person, but disability of a key player can be equally devastating to a business.

Key Man Life Insurance — business insurance on key persons within a compaKey Man Life Insurance — business insurance on key persons within aInsurance — business insurance on key persons within ainsurance on key persons within a compakey persons within a company.

A Keyman Insurance Policy is nothing but a life insurance policy availed by the company or an employer on its key person's life who is currently employed by him in the Insurance Policy is nothing but a life insurance policy availed by the company or an employer on its key person's life who is currently employed by him in the insurance policy availed by the company or an employer on its key person's life who is currently employed by him in the business.

The correct amount of life insurance on a key person creates liquidity in the event of an unexpected death.

To get up to speed on other types of business - related life insurance, read our previous articles on key person life insurance and life insurance for a buy - sell agreement.

There's no joy in thinking about losing a friend / business partner, but with key person life insurance, you can avoid the pain of a financial tragedy on top of the emotional distress.