Life for Key-person / Buy-Sell

Life insurance is a financial tool with many applications. Life insurance is often misunderstood because many times the primary benefits of life insurance have not been properly matched to the objectives. At S&B we take a consultative approach to first determine what the needs and objectives are. If life insurance is the right solution we then handle the underwriting to ensure the right product from the right company is acquired. Below is an outline of some of the more common uses of life insurance.

Personal Insurance

• Survivor income needs – The loss of a loved one is emotionally devastating, but if that person is a major contributor to the success of the home the financial impact can be equally devastating. Life insurance can help mitigate the financial risks.
• Estate Planning –Even though a law was passed repealing the estate tax it was for the year 2010 only. The chances of a permanent estate tax repeal are very slim. Thus estate taxes are a reality and are due 9 months from the qualifying death. There are four ways to pay those estate taxes – Liquid cash within the estate, the sale of estate assets, borrowing against property in estate, or for those that can qualify pre-funding the obligation with life insurance. We can show you how.

Business insurance

• Key-person insurance – As the loss of a family member can be devastating to the family, the loss of a key employee can be disastrous for a business. Key-person coverage will provide resources to company to help recruit a replacement and/or weather any loss of revenue.
• Buy/Sell Insurance – Many businesses make up the bulk of the owners’ net worth. In a situation that the business is illiquid and/or the surviving partners are unable to purchase the business from the deceased party there can be a dual problem, a liquidity issue for the deceased’s estate and a business continuity issue for the surviving partners.
• Retirement Funding – For highly compensated employees the traditional qualified plans may not be enough to pre-fund retirement. Deferred compensation plans can be a key way for these employees to increase their retirement savings.