Your SlideShare is downloading. ×
Plan the future of your business, Life insurance for business protection
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Plan the future of your business, Life insurance for business protection

374
views

Published on


0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
374
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Life Insurance For Business Protection
  • 2. Planning The Future Of Your Company
    • Are you taking the right steps to make sure your business can survive the death of an owner or key employee?
  • 3. Planning The Future Of Your Company
    • Without adequate planning, your business may be negatively impacted or forced to close in a relatively short period of time.
    • Why? Not because you did something wrong, but because you did nothing.
  • 4. Business Succession Planning
    • A crucial step to help ensure the successful transfer of your company or business interests.
    • Helps assure that funds will be available to help provide maximum financial flexibility in the event of retirement, death, disability, or if you leave the business.
  • 5. Key Person Coverage
    • How long would it take to replace your key person(s) and how much business does your company stand to lose during the transition?
  • 6. What Happens To Your Business When You Die?
    • Possible Scenarios:
      • If I die, my spouse will run the business
        • He or she may not want to run the business
        • He or she may not be capable of running the business
      • A competitor will buy the business
        • Competition could take business away instead.
        • Is the competitor interested or financially capable of buying the business.
  • 7. What Happens To Your Business When You Die?
    • Possible Scenarios:
      • My death or a key employee’s death will not impact the business
        • Can you find a suitable replacement at the same salary?
        • What if other surviving members want to help run business?
  • 8. Key Person Life Insurance
    • An insurance policy on the key person’s life, where the business is the owner and beneficiary, may help cover the cost of the transition.
  • 9. What If The Company Has More Than One Owner?
    • A Buy-Sell agreement funded with life insurance helps ensure the remaining business owners can buy deceased owners interest at an agreed upon price.
  • 10. Buy-Sell Agreement
    • A legally binding contract that can be used with all types of businesses.
      • Must be drafted by an attorney
    • Stipulates that at death, retirement, disability, or other withdrawal of a principal, his or her share of the business must be sold to the remaining partners, shareholders, or the business itself.
  • 11. Buy-Sell Agreement
    • Remaining partners, shareholders, or the business itself must purchase portion of business owned by the deceased, retired, disabled, or withdrawing principal.
    • Life insurance may be purchased to help fund agreement at death.
  • 12. Minimize Risk
    • Help protect yourself and your business from economic loss and increase the likelihood of success.
    • Reduce risk of loss at the death of a key person or at the time of business transfer.
    • Plan to retain control of business and assure the funds will be available to provide financial flexibility.
  • 13. Contact Information
    • Mickey Wells
    • Markham Priest Insurance
    • 20 Central Ave.
    • Ayer, MA 01432
    • Phone: 617-304-2417
    • Email: [email_address]
    • www.markhampriest.com