Your business is an asset worth protecting, life insurance can be the key to its continued success.
Life insurance can be a powerful tool for business, providing financial solutions with growth opportunities in addition to solid protection from the unexpected. Today's life insurance policies are cost-effective and tax-efficient sources of cash value, both during your lifetime and at death.
For your business needs, life insurance can be used to:
Protect business operations from the death of an owner or key employee
Provide cash value to help with business ups and downs Repay debts and enhance relationships with creditors
Attract, retain and reward key employees
Reduce the amount of income and estate taxes that will have to be paid out of business profits
Ensure a smooth business transition upon retirement, disability or death
Life Insurance Offers Added Benefits
In addition to growth potential and protection, life insurance offers a number of advantages, including:
Earnings and gains on policy cash values grow income tax-deferred
Cash values, including earnings, can be borrowed income tax-free during lifetime as long as Policy is not a “modified endowment contract” (MEC) and policy must not be surrendered, lapsed, or otherwise terminated during the lifetime of the insured.
Death proceeds are paid income tax-free, and with proper planning, can be free of estate taxes
Depending on state law, cash values and death proceeds are generally protected from creditors, lawsuits, etc.
Accessing cash values may result in surrender fees and charges, may require additional premium payments to maintain coverage, and will reduce the death benefit and policy values.