Financial Life Insurance

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Financial Life Insurance
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Buy-out agreement between partners

• The partners in a business buy life insurance
  that is to help the company buy back the shares
  of a partner at his/her death. By doing so
  partners avoid having their heirs as new partners
  in the company. The insurance also serves as a
  protection of the family estate of the
  shareholders.

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Corporate insurance retirement program

• Undistributed profits of the company are invested
  in a corporate held life insurance contract where
  they grow tax free. At retirement the insured
  shareholder receives as pension supplement
  regular annual loans that are secured with the
  policy cash values.

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Overhead Expenses

• The owner of the company insures all fixed
  expenses in the business with a disability
  coverage, so the business can survive periods of
  shareholders inability to work.

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Key Employee Protection

• The business insures key employee or a
  shareholder with life, disability and critical
  illness insurance to offset the financial impact
  of loosing the employee/shareholder.

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Critical Illness Split Dollar

• A tax strategy in which the the shareholder/key
  employee can personally receive reimbursement of
  insurance premiums paid by savings of the
  corporation.

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Corporate Estate Bond

• The shareholders estate can receive the savings
  of the corporation as a tax-free dividend paid
  from the Capital Dividend Account, if the savings
  have been invested in a corporately held life
  insurance.