Sentences with phrase «owner purchases a life insurance policy»

If you are involved in a business with a partner, it's possible that you have a buy / sell agreement in which each business owner purchases a life insurance policy on the other owner and then uses the death benefit to buy out the deceased owner's share of the business.

If you are involved in a business with a partner, it's possible that you have a buy / sell agreement in which each business owner purchases a life insurance policy on the other owner and then uses the death benefit to buy out the deceased owner's share of the business.

Simply put, a buy / sell agreement is when each business owner purchases a life insurance policy on each of the other owners.

Therefore, business owners can set up a buy / sell agreement whereby each owner purchases a life insurance policy on the lives of the other owners.

Cross Purchase Plan — In a cross purchase plan, each owner purchases a life insurance policy on the other owner or owners.

With a Buy - Sell life insurance agreement, each owner purchases a life insurance policy that provides a death benefit equal to their ownership share in the business.

Not exact matches

(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.)

The Additional Life Insurance Rider (ALIR) allows the owner of the policy to make increased premium payments in order to purchase additional participating paid up life insurance, increasing the policy's death benefit and cash value groLife Insurance Rider (ALIR) allows the owner of the policy to make increased premium payments in order to purchase additional participating paid up life insurance, increasing the policy's death benefit and cash valuInsurance Rider (ALIR) allows the owner of the policy to make increased premium payments in order to purchase additional participating paid up life insurance, increasing the policy's death benefit and cash value grolife insurance, increasing the policy's death benefit and cash valuinsurance, increasing the policy's death benefit and cash value growth.

Q. Hello, 100 % shareholder President and CEO of an S Corp. wanted to purchase individually as owner and beneficiary a life insurance policy on the life of a vice — president and COO of his company.

Another delay was that the buyer had purchased home owners insurance on property required by his lender a year ago and they cancelled that policy considering they weren't living in the house and had to start a new policy.

Usually, the older the child gets, the fewer dates the policy owner has to purchase more life insurance under the rider.

A company or business entity will purchase a life insurance policy on an owner, founder, or another key employee, and pay the premiums on the life insurance policy.

Individual life insurance policy purchased by the business owner on behalf of select key employees.

We've had a lot of business owners spend the time to purchase a life insurance policy only to ultimately not be able to collaterally assign the policy to the bank.

There isn't enough information for me to know why the insurance was purchased on the child, but hopefully it was to protect the child's interests later in life rather than a «benefit» to the owner / beneficiary of the policy if the child dies during their formative years.

100 % shareholder President and CEO of an S Corp. wanted to purchase individually as owner and beneficiary a life insurance policy on the life of a vice — president and COO of his company.

This means that the life insurance policy purchased to fund the death portion of the buy - sell agreement can not be transferred to the disabled owner or dropped until the end of the installment period, because the death benefit will be needed to complete the transaction in the event of death during the buyout period.

Usually, the older the child gets, the fewer dates the policy owner has to purchase more life insurance under the rider.

Free Look Period: The period of time given to a policy owner to decide if they want to keep the life insurance policy they purchased.

Whole life insurance combines a level premium with guaranteed cash values which the policy owner may use to meet a variety of financial goals.3 Whole life insurance policies may also produce excess credits, which may be used to purchase additional paid - up life insurance, potentially increasing the available death benefit.

Therefore, when considering the purchase of a life insurance policy, it is important to keep in mind that the policy will constitute a legal contract between the insurer and policy owner.

The vice-president and COO wanted to purchase individually as owner and beneficiary a life insurance policy on the life of..

Recently, a younger business owner client of mine was inquiring about purchasing a term life insurance policy.

Life insurance policies are purchased by policy owners for different sets of reasons.

When a life insurance policy is purchased through a life settlement, the new owner — an institutional investor — becomes the beneficiary, but they also assume all premium payments.

Participating whole life policies (also called «par whole life») also issue a non-guaranteed dividend to policy owners, which is credited to their cash value, and is frequently used to purchase small amounts of fully - paid up life insurance.

This coverage allows the policy owner to purchase additional amounts of insurance on the life of the insured person without evidence of insurability up to a maximum of 5 times.

In the event an owner dies, the company receives the proceeds of the life insurance policy and uses the proceeds to purchase the deceased owner's business interest at a previously agreed upon price.

In a stock redemption plan funded by life insurance, each business owner is party to an agreement where the business purchases a life policy on the life of each business owner in an amount equaling their respective business interests.

If you purchase a life insurance on your former husband, you just need to make sure that you will be named the owner and the beneficiary of the insurance policy.

The policy owner may no longer need or want his or her policy, he or she may wish to purchase a different kind of life insurance policy, or premium payments may no longer be affordable.

It gives the owner of the policy an ability to purchase additional life insurance at a future date without proof of insurability.

Guaranteed Insurability Rider DEFINITION: an optional rider attached to permanent life insurance policies that allows the owner to elect to purchase additional life insurance death benefit coverage periodically at certain attained ages, or alternatively, upon certain special occasions such as marriage and the birth of a child.

While a policy's owner and insured might be the same, a person can purchase a life insurance policy on someone else with the prospective insured's consent and by demonstrating an insured interest in the insured's continuing life.

The additional coverage provided by some disability riders, and the option to purchase additional life insurance at the same health rating as the original policy provided by the guaranteed insurability rider has significantly improved policy owners peace of mind and quality of life.

Whole life insurance does give the policy owner the option of using dividend payments to purchase additional paid up insurance, so hypothetically a whole life policy can have an increasing death benefit over time if this dividend option is chosen.

(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.)

The Additional Life Insurance Rider (ALIR) allows the owner of the policy to make increased premium payments in order to purchase additional participating paid up life insurance, increasing the policy's death benefit and cash value groLife Insurance Rider (ALIR) allows the owner of the policy to make increased premium payments in order to purchase additional participating paid up life insurance, increasing the policy's death benefit and cash valuInsurance Rider (ALIR) allows the owner of the policy to make increased premium payments in order to purchase additional participating paid up life insurance, increasing the policy's death benefit and cash value grolife insurance, increasing the policy's death benefit and cash valuinsurance, increasing the policy's death benefit and cash value growth.

Term life policy owners typically purchase life insurance for an amount of time that will last as long as their beneficiaries will need financial protection.

An owner can choose to keep these in the policy, purchase additional paid up life insurance, or take them as payments (or pay the premiums with them).

As such, life insurance companies has developed the inflation rider, which policy owners can purchase as an add on rider to their policy, which would raise their face amount annually.

The owner of a participating whole life policy will participate in the divisible surplus of the life insurance company from which the policy was purchased.

When purchasing key person life insurance, the policy's beneficiary, owner, and payer should always be the business, just like a Buy - Sell Agreement.

Cost of Living - Permits the policy owner to purchase an inflation - adjusted one - year term insurance equal to the percentage change in the Consumer Price Index with no evidence of insurability.

You would be the owner of the life insurance policy if you purchase the coverage and pay the premiums.

If you intend to run your business for the rest of your life, each business owner should purchase a permanent life insurance policy.

Another delay was that the buyer had purchased home owners insurance on property required by his lender a year ago and they cancelled that policy considering they weren't living in the house and had to start a new policy.