Planning Your Legacy

Protecting Your Business

Most life insurance is not structured to benefit the insured.  It’s implemented to benefit those who are left behind when the insured passes away.  Leaving behind a significant death benefit can ease some of the difficulties of navigating a myriad of decisions, hurdles, and obstacles after an unexpected death.  Whether benefiting your family, business, or favorite charity, the influx of funds at a difficult time can build a strong foundation for years to come.

The sudden death of a business owner can greatly impact a business if proper planning is not in place.  The effect to employees and the other owners of the business can be devastating, along with a potentially significant financial impact to the business owner's family.  A properly structured Buy/Sell plan may help reduce the effect of the loss.  We recommend considering the implementation of a Buy/Sell plan using life insurance.  Using life insurance to fund makes it necessary to consider large parts of the planning pre-mortality, when emotions are low and all business owners are present.  A trusted insurance advisor will work with tax, legal, and other financial advisors to implement the Buy/Sell plan that best fits the needs of the business. 

Buy/Sell planning can remove the worry of how the business will be preserved and how a family will be supported after the unexpected death of a business owner.  Buy/Sell funding can be done through life insurance with discounted dollars by way of premium payments instead of extracting value from the business after an owner has passed away.  Life insurance is often used to fund a Buy/Sell plan because it can provide the immediate liquidity necessary to buy out interest in the business upon death, ensuring that heirs receive a cash inheritance while allowing the remaining owners to continue to run and maintain the business. 

Contact us with any questions or opportunities to help you or your clients achieve identified goals.  This is what we enjoy doing for only a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.