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Looking for business life insurance?  You've come to the right place!

We provide online business life insurance quotes allowing you to easily shop online with access to all of the top life insurance companies in the country.

Business life insurance is any life insurance policy purchased for the benefit of the business, its owners or employees.

Types of Business Life Insurance 

Key Man Life Insurance

Key Man Life Insurance is intended to provide a business the money necessary to see it through the loss due to death of a key individual.

The money would be typically used for such things as recruitment and training of a replacement employee or partner.

Think about it, what if your #1 salesman died and his customers all leave and go to a competitor.

Or what if the manager of your business dies, the manager that your other employees and your customers love.  Will you lose other employees and customers. 

Buying a term life insurance policy on the life of a key person employee is an easy way to protect your business if the key employee were to die.

Buy Sell Agreements

If you're partners in a business, and that partner dies, their shares in your business are likely to pass over to their spouse. This places you in the position of now being in business with your partner's spouse.

To prevent this, buy sell agreements are often put in place. Basically the partners and their beneficiaries agree that should one partner die, that partner's spouse is required to sell their shares back to the remaining partners - at a reasonable price.

The money to buy this forced purchase is often times provided through life insurance.

If a partner dies, the life insurance proceeds are paid by the insurer to the remaining partners, who then give that money to the deceased partner's spouse in return for their shares. This technique requires the assistance of a skilled lawyer and accountant.

Loan Insurance

Lenders will often require business owners to buy a life insurance policy as collateral to pay loan in the event of the owners death.

Most U.S. Small Business Administration lenders do require business owners of sole proprietorships, single member Limited Liability Corporations or for businesses otherwise dependent on one owner's active participation to buy life insurance prior to loan approval.   

Term life insurance is an inexpensive way to provide Key Man life insurance, fund a buy sell agreement or provide collateral for a loan!  Especially if you need life insurance right away!!

Executive Benefits Life Insurance

Executive Bonus Plans

These type of permanent cash value life insurance plans are the "golden handcuffs" to keep key employees happy and to remain employed by your business.   

Benefit to the employee is a tax free death benefit to beneficiaries, possible income tax free cash value benefits when employee retires

Payment of premiums by the business can be tax-deductible, so can be a win for both business and employee!

Restricted Endorsement Bonus Arrangement 

Similar to an Executive Bonus Plan except that the employer or business sets a specific time limit before the employee can access any policy benefits.

This time limit should hopefully prevent key employee from leaving the business earlier than expected. 

Deferred Compensation Plans

Deferred compensation plans using life insurance is another way businesses can retain top employees.

These can be a simple way for higher earning employees to defer more than 401k limits allows.

These also provide tax advantages to employees by providing tax deferred growth of their contributions and to employers when the employee withdrawals money from the plan. 

Group Term Life Insurance

Group life insurance is a relatively inexpensive way for businesses to provide their employees with another benefit.

Group Life is usually issued on guaranteed issue basis, meaning employees don't have to medically qualify up to certain amounts, i.e. 1 times salary or $50,000.  

For employees that may want more than the minimum provided, they can usually apply for supplemental coverage in addition to the minimum amount provided.   

Only real negative about Group Life insurance is that the insurance is tied to your employment, so if you leave employer, you'll lose the coverage.

Group Life is often convertible if you do leave employer and want to continue the insurance on your own, but it's usually only convertible to high priced whole life insurance which is very expensive.  

Advantages of Business Life Insurance

Key Person and Buy-Sell life insurance provide financial security to business owners, business partners and their families.

Life insurance as collateral for a loan is often required and any amount above what you owe to lender at your death will go to your personal beneficiary. 

Executive benefit life insurance and deferred compensation plans are great way to retain your best employees.  

Make a quote request using the quote form button above to find the best business life insurance plans for you or your employees.

Call or text us at 800-380-3533 or email us if you'd like more information and  help in securing the best business life insurance offer.

 

 

 

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