Business Risk Management

Business collateral loan insurance is designed to secure the funds necessary to pay off a loan or a business debt obligation to a lending institution.  This type of plan is best suited for businesses seeking credit for the purpose of operating or expanding business.

Reduce the Net Cost of your Company’s Collateral Insurance!

A life insurance policy is an excellent tool that can be used to create a tax-advantaged account.  This account is under your control while you are alive, (subject to the collateral assignment to the lender) and is paid out tax-free to cover the amount of the loan on death.  Any remaining balance will be payable to your beneficiary.  This means you not only achieve a tax deduction for a portion of the cost of the insurance policy, but you avoid paying income taxes on the growth in the account as well!

Uses life insurance policy to help you protect your business from the costs that result from the death of a key person. Generally, it is not possible to avoid the risk of losing a key person to disability or death.  And the cost of losing a key person would be a significant burden on your business.

Key person protection is a cost-effective way to ensure the continued viability of your business in the face of a specific risk.

Situation

• The success of your business depends on its people.
• Most businesses have key people whose contributions are critical to the performance of the business.  These are often customer relationship managers or technical experts, or owner-managers.

Solution

• Key Person Insurance

A buy-sell agreement helps to provide funding at the precise moment required to execute the instructions in a buy-sell agreement.

A buy-sell agreement is best suited for:

• business owners
• partners
• shareholders

Buy-sell agreement is the key to a successful business succession plan.