Title: Business Buy Life Insurance
1Business Buy Life Insurance
2Buy-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.
3Corporate 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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5Overhead 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.
6Key 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.
7Critical 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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9Corporate 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.
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