The “personal key-person” solution
A personal key-person solution insures against the loss of your business’s most essential person — you. Through the purchase of an individually owned permanent life insurance policy, you can secure:
- Income tax-free death benefit to financially protect your loved ones
- Access to tax-free income from potential cash value that accumulates inside the policy
- Potential long-term care protection when an optional long-term care rider is added to the policy
- Waiver of premiums in the event of a total disability when optional rider is added
How it works
Permanent life insurance, at its core, is a protection vehicle. No matter what stage you are at in life, your policy provides an income-tax free death benefit, making it an excellent way to ensure your family’s financial security. And, when that life insurance policy is designed as part of a personal key-person solution, you also have the ability to access the policy’s cash value to help offset a number of the risks often faced by small business owners.
In next blogpost, we will discuss how the protection works.