As a business owner, you understand the importance of protecting your key employees. They are the backbone of your company and losing one of them can have a significant impact on your business. That’s why it’s important to have a life insurance strategy in place to protect all your key persons. Let’s explore some options:
Key Person Life Insurance
Key person life insurance is a policy purchased by the company on the life of a key employee. The death benefit is paid to the company. This can help cover the financial loss the company may experience as a result of the employee’s death, as well as the cost of finding and training a replacement.
Split Dollar Life Insurance
Split dollar life insurance is an arrangement between the company and the key employee, where both parties share the premiums and death benefit of a life insurance policy. This can be an effective way for the company to provide a death benefit for the employee’s family while retaining some ownership of the policy.
Bank-Owned Life Insurance
Bank-owned life insurance (BOLI) is a life insurance policy purchased by a bank on the lives of its key employees. The bank pays the premiums and is the beneficiary of the policy. BOLI can be an attractive option for banks because it provides tax advantages and can help offset the cost of employee benefits.
No matter which life insurance strategy you choose, it’s important to work with an experienced insurance professional who can help you determine the best approach for your business.
Connect With Our Team
If you want to learn more about protecting your key persons with a life insurance strategy, our team is here to help. Contact us today to schedule a consultation.