Key Man Insurance

(redirected from Business Life Insurance)

Key Man Insurance

A life insurance policy that a company purchases on one or more of its most important employees. The company pays the premiums and is the beneficiary. If the employee dies unexpectedly the company receives the benefit to offset the financial loss from the employee's demise. Partnerships often have key man insurance on each of the partners, while publicly-traded companies carry policies for major executives and managers. Companies use key man benefits to buy back stock in the company from the decedent's estate. It is also common to use the benefit to offset lost production or to pay a headhunter to find a replacement employee.
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(Related: Life Settlement Opportunities for Business Life Insurance )
Many of our partners anticipate substantial growth opportunity in the point of sale market, working on behalf of agents and advisors working directly with the end client to advise and implement policies for their personal and business life insurance needs.
During the discussion about the firm's insurance everyone was in sync until I spoke about the need for Business Life insurance, including Key Man and funding a Buy-Sell Agreement.
But borrowing to finance business life insurance (such as key person, split dollar, or stock purchase plans) is not considered to be incurred in connection with the borrower's trade or business.
Without certain kinds of business life insurance like key person coverage or an insured buy-sell agreement on the partner who died, our fictitious business may have serious problems and be forced to liquidate or even close shop.
Columbian maintains a solid financial and investment posture and offers consumer-oriented products designed for family and business life insurance needs.
Are death proceeds of business life insurance exempt from income tax?
When death benefits of business life insurance are exempt from income tax.
He got his start in the real estate business in 1979 when he joined the Equitable Life Insurance Company, a financial services firm offering individual and business life insurance in New York.
CPAs should emphasize this important goal as they help clients review their disability protection, business life insurance, 401(k) and other retirement plans, as well as their succession plan.

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