Business Life Insurance

Buy/sell purchase agreements

If you’re starting up your company, you’ll need to look into creating a buy/sell agreement. These purchase agreements are legally binding contracts that serve two purposes. First, the contract delineates what will happen to an owner’s market share if they become disabled, die, or leave the company. Second, it creates funding to buy back a deceased or disabled owner’s market share.

Using life insurance as funding for your buy/sell agreement is the best way to guarantee your company gets a return on its market share. Should an owner die, your company or all remaining owners would receive a payout large enough to buy the market share directly from the owner or the deceased owner’s heirs.

Best Life Insurance can guide your company through life insurance options that fund your buy/sell agreement. Together, we’ll create an entity-owned, co-owned, or hybrid life insurance policy. Visit our Buy/Sell Agreements page to see how Best Life Insurance can help you today.

Key employee insurance

Your company’s key employees are your top performers or critical employees. They are considered so important that the company’s financials could be in jeopardy if they should die. For example, if the key employee is critical enough, your company may go bankrupt.

Common examples of keyman employees include executives, brand representatives, loan holders, primary design contributors, and more. If one of your key employees should suddenly pass away, a keyman life insurance policy would give you a payout. That way, your business can gather its bearing while working to find a replacement.

Find out more information about our Keyman Insurance policies here.

Executive bonuses via life insurance

Traditional bonuses are placed directly into an employee’s bank account. With an executive bonus life policy, or section 162 policy, you give bonuses through a life insurance policy. Usually, employers choose either whole life or indexed universal policies. By definition, bonus life policies are an incentive to retain your executives.

Your company will pay the bonus policy’s premiums, and your executive will both own the policy and be the direct beneficiary. As they are permanent, the plans will build up cash reserves. However, you can create restrictions to prevent your top team from withdrawing the cash value until they reach specific goals or retirement.

Best Life Insurance can help you decide and create the best policy restrictions that will reward and retain your executives. Visit our Bonus Life Insurance page to learn more.

Living benefits

Another way to retain employees and encourage recruits is to offer a living-benefits life insurance add-on, or rider. The plan provides a payout to those who qualify for help cover care expenses during an employee’s final days.

Living benefits are provided to someone who has gone through a trigger or major life event. A physician must submit information that verifies your employee qualifies for the assistance. There are three ways an employee can be eligible for living benefits:

• Terminal illness
• Critical illness
• Chronic illness

Further, your employee must already have a life insurance policy in place. The living benefits payout is drawn from their current life insurance plan. In brief, a living benefits policy allows your employee to withdraw some of their death benefits before they pass away. More information on our Living Benefits plan is available here.

Employee life insurance

Most of the time, employers offer their full-time employees healthcare and prescription insurance benefits and skip life insurance. However, adding life insurance benefits to your package can attract recruits and encourage your current employees to stay with the company.

With group life insurance, you’ll provide life insurance at a low cost to your employees. Many employees love the convenience of a company-created life insurance plan. Further, they can choose to increase their coverage options at no additional cost to you. Visit our Employee Life Insurance page to learn more about our coverage options.