Insurnace to Protect and Reward

Life insurance is useful in business settings, where it can be used both to reward key employees and to protect the business from the loss of key employees.

When a business fails, it usually has nothing to do with fires, floods, theft, or other disasters -- or even with the knowledge of the person or partners to whom business ownership will be transferred. Instead, it has to do with the life of your business -- the people who make the business happen and the financial planning it takes to successfully transfer a business to surviving family members or partners.

Life insurance can help you protect and extend the life of your business. Through key employee protection, employee-benefit programs, buy-sell plans and other unique funding arrangements, life insurance may provide valuable tax benefits and may retain employees, protect the business from loss, and ensure that the business is transferred successfully

PROTECTING YOUR BUSINESS

Attracting, Retaining and Rewarding Key Employees
 

Attracting, retaining and rewarding key employees can be just as challenging - and just as important - to the life of your business. When a piece of office equipment breaks down, you can call a repair person or purchase a replacement. When a key employee leaves, however, there is no local office supply store with qualified replacements on the shelves. Interviews and tests must be conducted, and money must be expended to train the new employee. Even with training, it is often several years before the new employee gains the same level of knowledge and expertise in your business.

Recruiting and retaining quality employees is vital to the life of a business, but with downsizing, mergers, and increased competition, paying the highest salary is often not a practical solution for many employers.

Two employee-benefit plans can help you meet this challenge: the Executive Bonus Plan and the Deferred Compensation Plan. Life insurance may play an important role in each.

Attracting, Retaining and
Rewarding Key Employees
 

Selecting a Plan
It is important to consider life insurance as part of your overall business plan. Whether it is used to protect a business, to attract and retain key employees, or to ensure an orderly transfer of ownership, life insurance can be critical to the life of your business.