Many business owners need life insurance to protect against the loss of a key person and fund their business succession strategies. With careful attention to structure, you may be able to use one policy to cover both needs at the same time.
For businesses that need to maintain a large amount of liquid assets to meet bonding requirements, such as a construction business, consider using a high-cash-value universal life policy to help you fulfill the following needs:
- Key-person protection to help compensate for the loss of an owner
- Buy/sell agreement funding to help buy back company stock at an owner’s death
- An improved financial position since the company may book the policy’s cash surrender value as an asset
- A better rate of return