Life Insurance
The Importance of Life Insurance:
Life insurance provides you with the comfort of protecting yourself and your family from risks. Benefits to life insurance include, but are not limited to:
- Providing for Spouse/Child(ren)
- Repayment of Outstanding Debt
- Business succession & continuity, for example to fund a cross-purchase or stock redemption buy/sell agreement.
- Key person insurance, to protect a company from the economic loss incurred when a key employee or manager dies.
- Life insurance retirement plan, or Roth IRA alternative. High income earners who want an additional tax shelter, with potential creditor protection, who have maximized their IRA and/or qualified plan.
Life insurance is a crucial tool for business owners. Without structuring a proper buy/sell agreement with business partners or insuring key persons a business owner may face the financial risk or leave themself with legal difficulties.
Coverage with Life Insurance
- Final expenses, such as a funeral, burial, and unpaid medical bills
- Income replacement, to provide for surviving spouses and dependent children
- Debt coverage, to pay off personal and business debts, such as a home mortgage or business operating loan
- Estate liquidity, when an estate has an immediate need for cash to settle federal estate taxes, state inheritance taxes, or unpaid income taxes on income in respect of a decedent (IRD).
- Estate replacement, when an insured has donated assets to a charity and wants to replace the value with cash death benefits.
- Business succession & continuity, for example, to fund a cross-purchase or stock redemption buy/sell agreement.
- Key person insurance protects a company from the economic loss incurred when a key employee or manager dies.
- Life insurance retirement plan, or Roth IRA alternative. High-income earners who want an additional tax shelter, with potential creditor protection, who have maximized their IRA and/or qualified plan.