The document provides information about a Life Insurance Portfolio Analysis (LIPA) that business owners can use to review and optimize their life insurance policies. The LIPA evaluates existing policies, assesses business needs, and recommends adjustments or enhancements. It addresses issues like buy-sell agreements, key person coverage, retirement planning, and compliance. The LIPA process involves gathering policy information, analyzing business and personal goals, and implementing agreed upon changes. A case study shows how the LIPA helped a business owner purchase adequate life insurance that later protected his family and business after his unexpected death.

1. www.thewestermangroup.com
BUSINESS OWNER’S GUIDE TO
Life Insurance
Portfolio AnalysisSM

2. Business Owner’s Guide to
Life Insurance Portfolio Analysis
1
You’ve been successful and you use
insurance to protect your business.
Now, let us help you review your:
n Buy-sell agreements
n Key person coverage – owner and non-owner
n Incentive planning – retain and reward employees
n Retirement planning for business owner
o Qualified
o Non-qualified
n Exit planning
o Buyout
o Estate liquidity
The Life Insurance Portfolio Analysis
(LIPA) provides business owners with
a comprehensive evaluation of the
performance of their life insurance as
well as recommendations to optimize
these policies.

3. *Based on more than 800 analyses performed by Ash Brokerage
in 2014
1
Review of 720 buy-sell reviews by the Principal Financial Group,
January 1, 2001, to July 31, 2014
2
Source: 2012 Independent survey of 505 small business owners
through Harris Interactive and Principal Financial Group
3
Source: PwC Family Business Survey, 2012
Are your policies
effectively protecting
you and your business?
Approximately 60 percent of life insurance
policies are underperforming or can be
improved by new products.*
Business Owner’s Guide to
Life Insurance Portfolio Analysis
2
Did you know?
25%
of buy-sell agreements
are fully funded
with insurance1
36%
of small business owners
have an exit plan2
62%
of business owners
have no plans
in place for the loss
of a key employee3

4. Why review your plans?
1. Pending creation of a new venture
2. Significant change in business value or revenue
3. Retiring or withdrawing owner
4. Substantial health change for insured/owner
5. Ensuring deferred compensation agreements are well funded
6. Compliance with 101(j)
Key Questions
1. What are the financial consequences to my family and business
if I pass away early or become disabled?
2. What are the financial consequences to my business or
their family if a key employee passes away early or becomes
disabled?
3 . Do I want to be in business with my business partner’s widow
or heirs?
4. When was the last time I reviewed my buy-sell documents?
5. What are my plans to fund my buy-sell agreement?
6. What are my plans for retirement?
A word on 101(j):
Compliance with 101(j) is crucial and can only be addressed at
time of policy application. Failure to comply with 101(j) could have
dramatic tax consequences to your business.
“Take away my people, but leave my factories, and soon grass will
grow on the factory floors. Take away my factories, but leave my
people, and soon we will have a new and better factory.”
Andrew Carnegie
Business Owner’s Guide to
Life Insurance Portfolio Analysis
3

5. TheLIPAProcessforBusinessOwners
REVIEW
product and planning
tactics to ensure they
are aligned with
goals and objectives
GATHER
information using
informal reviews of
buy-sell documents,
employment agreements
and business valuations
ANALYZE
business needs,
dreams and desires
Business Owner’s Guide to
Life Insurance Portfolio Analysis
4
IMPLEMENT
agreed upon changes
and periodically review
1
2
3
4
5
6
RECOMMEND
adjustments, enhancements,
or continued monitoring
of existing plans
and coverage
ACCESS
existing policy
performance and
functionality

6. Case Study
Facts at time of policy review:
n Business owner has a very prosperous company with small individual life
insurance policies
o The policies are underperforming and are inadequate to cover his family
or his business if he were to pass
n After being educated on his policies and the need for insurance for both his
family and his business, the business owner leveraged his current policy
values to purchase more insurance
LIPA result:
n Sadly, this business owner passed away unexpectedly
n Thanks to his life insurance, his business was able to continue while his
family was able to maintain their lifestyle
Business Owner’s Guide to
Life Insurance Portfolio Analysis
5

7. Testimonial
“I was so impressed with the independence of the LIPA that I
have recommended that business owners and clients, for
estate planning purposes, also utilize LIPA. I believe the
objectivity of the evaluation is very crucial and that the LIPA
was extremely well conducted.”
Dennis D. Sutton
Lawyer
Burt, Blee, Dixon, Sutton & Bloom, LLP
Business Owner’s Guide to
Life Insurance Portfolio Analysis
6

8. LI-4069 | Rev. 05/15
114 E. Aurora Road, Suite 100 | Sagamore Hills, OH 44067
(330) 467-3111 | www.thewestermangroup.com
For Producer Use Only. Not intended for use in solicitation of sales to the public. The LIPA is a complimentary service offered
by Ash Brokerage, Inc. (“Ash”) through some of the top financial service professionals in the country to assist consumers in
analyzing their existing insurance policies. For use with non-registered products only. It is not a program designed to encourage
consumers to replace existing policies. Products and programs offered through Ash are not approved for use in all states.
© 2015 Ash Brokerage Corporation
Brokerage Services provided by Ash Brokerage Corporation (800) 589-3000