Corporate Owned Life Insurance is a financial tool that can be used in a number of smart ways to protect one of your greatest assets: your business!
To start, you can use life insurance to protect:
The loss of a key person in your company (a.k.a. Key Person Protection)
Think of the person you rely on the most in your business. If they weren’t there, would your business slow, have its income reduced, or its production come to a grinding halt? You’ll never have to worry about this with Corporate Owned Life Insurance. We can structure it to create a tax free cash injection into your company in order to carry you through that rough patch. (Read more about Key Person Protection next week)
Fund your Buy Sell Agreement. In other words, buy out the shares of a partner should they pass.
Stay tuned next week for more advice on how YOU can be smart about your money and your business.