Insurance Planning for Small Business Success

Your Trusted Insurance Advisor

Small business term and whole life (cash value) insurance solutions that are simple, transparent, and effective. Focused on executive bonus plans, key employee programs, and buy-sell agreements.

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Insurance Services

Simplified insurance solutions for small business owners through tailored term, whole life, and annuities.

Executive Bonus Plans

Rewards employee with a bonus funded with a life insurance policy. Providing a tax deduction for the company and tax-deferred cash value for the executives retirement or a death benefit for their family.

How It Works:

1. Agreement: The company agrees to bonus a key executive (CEO, top salesperson).

2. Policy Purchase: The executive applies for a permanent life insurance policy (whole life or universal life) on their own life and names their beneficiary.

3. Bonus Payment: The company pays the bonus directly to the insurer, which is a tax-deductible expense for the company.

4. Taxable Income: The bonus amount is included in the executive's taxable income, often as a 'double bonus' arrangement to cover the premium and taxes.

5. Cash Value Growth: The policy builds cash value over time, which can supplement retirement income.

Key Employee Programs

A key employee life insurance policy (or key person insurance) is a business-owned life insurance policy on a crucial employee that pays a death benefit directly to the company if that employee dies, helping the business survive the financial hardship by covering costs for recruiting and training a replacement, lost revenue, and debt collateral. The business pays the premiums and owns the policy. It works by providing a cash reserve, ensuring business continuity, and protecting the company's financial stability after losing vital talent.

How it works:

1. Policy Ownership: The business purchases the policy, pays the premiums, and is the named beneficiary.

2. Insured: A vital employee (founder, executive, key salesperson, technical expert, top sales person) is the subject of the insurance.

3. Payout: If the key employee dies, the insurance company pays a tax-free, lump sum, death benefit directly to the business.

4. Use of Funds: The business uses the funds to:

   • Cover immediate expenses like recruitment, hiring, and training a replacement.

   • Offset lost profits or revenue.

   • Pay off debts or maintain credit.

   • Provide stability to partners or heirs.

5. Policy Types: Often term life insurance is used for its cost-effectiveness, but cash value (whole life) policies can also be used for long-term benefits or as an employee incentive.

6. Optional Disability Rider: A rider can be added to provide benefits if the key person becomes disabled.

Buy-Sell Agreements

A buy-sell life insurance policy funds a formal agreement between business partners or owners, using life insurance to provide immediate cash to buy out a deceased owner's share, ensuring business continuity and providing funds for the family, typically through either a 'owners insure each other' or 'business insures owners' plan, with proceeds usually tax-free for the buyer.

How It Works:

1. The Agreement: Business owners create a legal contract (the Buy-Sell Agreement) that dictates what happens if an owner dies, becomes disabled, or leaves.

2. Funded with Life Insurance: A life insurance policy is purchased to provide the funds needed to fulfill the agreement.

3. Triggering Event: When an owner dies, leaves, or becomes disabled, the policy "triggers".

4. Payout: The insurance company pays the death benefit (usually tax-free) to the designated beneficiary (either the other owners or the business itself).

5. Buyout: The proceeds are used to buy the deceased's business interest from their estate or heirs at a pre-determined price, keeping the business intact.

Christine was very knowledgeable and helpful. She took care of my insurance needs and was very friendly. I highly recommend her.

Shawn Davis

SD Bookkeeping

★★★★★

LB Bookkeeping NW

Frequently Asked Questions

What if I can't qualify for an insurance policy?

In some situations we can use an annuity as an alternative to a term or whole life insurance policy.

How do you simplify insurance?

I am an independent agent that works with multiple carriers to find the right policy for you and your companies needs.

What insurance carriers do you work with?

NLG (National Life Group), Corebridge, Mass Mutual, North American, Transamerica, Symetra, and Nationwide to name a few.

Do you charge fees?

No. My services are commission-based, ensuring transparency and no hidden costs for clients.

Can I schedule a consultation?

Yes, you can easily schedule an appointment online. Click any of the Schedule Quote buttons to be directed to my Calendar.

What is your client approach?

I prioritize a simple, transparent process, ensuring clients understand their options and feel confident in their decisions.