Sentences with phrase «use key person life insurance»

Businesses of all sizes — from tiny companies to large Fortune 500 corporations — routinely use key person life insurance.

Another business continuation strategy is using a key person life insurance policy.

Not exact matches

People who need permanent life insurance protection but wish to take advantage of possible cash accumulation via an equity index might use IULs as key person insurance for business owners, premium financing plans or estate - planning vehicles.

When this happens, if a cash value life insurance policy was used to fund a key person policy, the amount of the cash value can be taken out in the form of an easily accessible life insurance policy loan, with no origination costs, tax free.

Key person insurance does not have a legal definition and does not refer to a type of insurance but rather to the use and application of life insurance or long - term disability insurance, as it applies to the loss of a key business persKey person insurance does not have a legal definition and does not refer to a type of insurance but rather to the use and application of life insurance or long - term disability insurance, as it applies to the loss of a key business perskey business person.

AND using cash value whole life insurance from a mutual company for this strategy as opposed to other types of life insurance such as universal life or term life insurance offer some additional incentives for your key people.

One reason to buy term life insurance is to use it as key person life insurance.

This is a great rider for a small business key person or for someone who is using life insurance to fund a buy - sell agreement.

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.

There are several different types of life insurance that are used in key person scenarios and the right policy will ultimately depend upon the timeframe for the need of protection.

Key person life insurance is another type of coverage that is oftentimes used with protection of a business.

Businesses can avoid many possible negative financial consequences from the loss of key people by using life insurance.

Coverage is available for all family members and can also be used for strategic business planning such as key person life insurance coverage.

Three key plans that are often used by business owners include buy / sell agreements, cross purchase plans, and the purchase of key person life insurance.

A Key Person Insurance policy is a type of life insurance policy that is used to cover a key person of a busineKey Person Insurance policy is a type of life insurance policy that is used to cover a key person of a busPerson Insurance policy is a type of life insurance policy that is used to cover a key person of a Insurance policy is a type of life insurance policy that is used to cover a key person of a insurance policy that is used to cover a key person of a businekey person of a busperson of a business.

We can not stress the importance of using life insurance to fund a buy - sell agreement or to provide business protection via key person insurance enough.

Life insurance protects your family from your financial debts and obligations after you die by providing a death benefit, but it also may be used for business purposes to compensate a company for the loss of a key person in the company.

Key person term life insurance can also be used to pay off existing debt.

Key man life insurance is a form of term life insurance used to protect a business in the event that a person who is vital to the business were to pass away.

The 3 basic types of life insurance used to fund key person insurance include term life, universal life and whole life.

Generally, when using a key man life insurance policy to secure a loan, a collateral assignment is utilized to ensure the bank or lending institution receives funds to cover the loan balance due in the event the key person or business owner dies.

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.

When this happens, if a cash value life insurance policy was used to fund a key person policy, the amount of the cash value can be taken out in the form of an easily accessible life insurance policy loan, with no origination costs, tax free.

Business people use low cost life insurance to protect the business in the event of the death of a key man or key employee.

Key person insurance does not have a legal definition and does not refer to a type of insurance but rather to the use and application of life insurance or long - term disability insurance, as it applies to the loss of a key business persKey person insurance does not have a legal definition and does not refer to a type of insurance but rather to the use and application of life insurance or long - term disability insurance, as it applies to the loss of a key business perskey business person.

Business people also use these policies to fund buy sell agreements or for key employee life insurance.

It is used by business people to cover outstanding loans, to fund buy - sell agreements in the event that a partner or shareholder dies in the initial years of a new business, or for key employee life insurance.

For business owners, term life can be used to cover their key person business insurance or SBA loans.

The death benefit from a key person life insurance policy is commonly used by the business to locate, train, and hire a new executive.

AND using cash value whole life insurance from a mutual company for this strategy as opposed to other types of life insurance such as universal life or term life insurance offer some additional incentives for your key people.

In the event that additional life insurance was purchased as key - person insurance, that money could be used by the business to offset any income loss resulting from the owner's death.

This form of the option frequently is used with split dollar insurance which is commonly used in key person and other business life insurance applications.