Using Life Insurance to Protect Retained Earnings in a Closely Held Corporation
Closely held corporations often retain earnings rather than distribute them, aiming to reinvest in growth or strengthen the balance sheet. But while this strategy can build enterprise value, it also introduces significant risk. What happens to those retained earnings...
Buy-Sell Agreements: Why Life Insurance Is the Smartest Funding Option
When it comes to safeguarding the future of a privately held business, few tools are as critical - or as overlooked - as the buy-sell agreement. These legally binding contracts ensure a smooth transition of ownership upon the death, disability, or retirement of an...
Why CPAs are Rethinking Life Insurance for High-Income Clients
For years, many CPAs viewed life insurance primarily as a sales product - not a planning solution. That view was understandable. Too often, proposals lacked context, coordination, or transparency, and were driven by commissions rather than client outcomes. However,...
How Life Insurance Enhances Executive Bonus Plans
In today’s competitive talent landscape, business owners and executives are constantly searching for ways to attract, retain, and reward key employees. Traditional bonus structures and equity incentives may offer short-term motivation, but they often fall short in...
How Successful Business Owners Can Use Life Insurance to Reduce Taxes
If you're a successful business owner earning $700,000 or more in annual income, you’re likely aware of just how punishing the tax code can be. Despite maxing out retirement plans and leveraging deductions where possible, high-income business owners often hit a wall:...
Common Life Insurance Policy Riders
Life insurance policy riders are add-ons to a life insurance policy at issue. The best way to think of a rider is they are like an option for your car. For instance, you have a base model car. Then, for an additional cost, you can add options. Options may include an...
What is a Term Life Insurance Conversion?
A term life insurance conversion allows a policy owner to convert their existing term insurance to a permanent life insurance policy. Term life insurance is the most common form of life insurance individuals own. It is useful for providing family protection, buy-sell...
Guidelines for Transferring Business Owned Life Insurance
There are several reasons a business may want to transfer ownership of a corporate-owned life insurance policy to an individual. Perhaps a business owner is selling their company and would like to keep the policy for their individual planning. Maybe it is an employee...
The 4-Step Formula for Choosing the Right Term Life Insurance Policy
In the world of life insurance – term life insurance is the easiest to understand and it is the type of coverage most people need. Term life insurance is designed to provide coverage for a predetermined period of time. You decide how long you want the coverage to last...