Life Insurance is What’s Next

Business Planning

A successful financial plan evolves to ensure clients have the tools they need to protect their wealth, achieve their goals, and leave a lasting legacy. The final step when first implementing most financial plans is to consider whether a client’s life insurance portfolio is properly aligned with both their personal and corporate needs. Whether a client is underinsured, needs to review existing coverage, or has an identified need with no coverage in place, a comprehensive review of the financial plan can identify gaps where life insurance can provide a solution, establishing funding for both estate and corporate planning needs.

For corporate planning, a life insurance need is often driven by the value of the business, the financial impact of key employees, and the company’s long-term objectives. Life insurance can provide liquidity and flexibility when the business needs it most.

Coverage can be used to fund buy/sell arrangements, protect against the loss of a key person, and support executive benefits designed to attract, retain, and reward top talent. It can also provide funds to cover the costs of recruiting, hiring, and training a replacement for a key employee.

For businesses seeking to provide executive retirement or deferred compensation benefits, properly structured permanent life insurance may also build cash value on a tax-deferred basis, with access to policy values potentially available on a tax-advantaged basis, subject to policy structure and applicable tax rules.

The first step in determining the appropriate amount of coverage is understanding the client’s complete financial goals. Since the same underwriting can be used for both personal and business coverage on the same insured, understanding the full scope of the client’s needs before implementing coverage can create greater planning efficiency. Reviewing both the personal and corporate financial plan can help identify potential liquidity needs, estate tax exposure, existing coverage, and planning gaps. Once a life insurance need is identified, contact us to help evaluate the coverage amount, policy design, and product options that best align with the client’s objectives.

We welcome any questions or opportunities to assist you or your clients in achieving identified goals. We take pride in serving a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.