When it comes to most forms of insurance, many people understand the importance of having coverage. Whether it’s your car, your home, or other valuable possessions, having insurance means that you’re financially protected should disaster strike. One of the first things you do when you buy a new car is to make sure it is protected before you drive it off the lot. Why? Because if you are involved in an accident chances are good you would suffer financially.
But, what about life insurance?
Although this form of protection works the same way as all other types of insurance, many are reluctant to open the conversation. Perhaps one reason is that life insurance involves the planning for the worst-case scenario – your death. The truth remains however, that if someone, your family or your business for example, would suffer a financial loss due to your death, life insurance is the answer. In fact, life insurance is one of the smartest ways to provide for both yourself and your loved ones.
For today, take stock of your current situation and consider these important reasons why life insurance is needed: Read more
Life insurance is used for two general purposes in a private corporation – managing risk and creating opportunities. The risk management function is satisfied as life insurance provides the corporation with a tax-free payment in the event of the death of an owner or someone vital to the success of the business. As life insurance also allows for the tax-sheltered build up of cash value additional planning opportunities are additionally created.
The primary needs for corporate owned life insurance to satisfy the risk management purpose are as follows:
Key Person Life Insurance
Any prudent business would insure its company facilities and equipment that is used in creating revenue. It follows then that the business should also insure the lives of the people that run the company and make the decisions which contribute to its profit. Any owner, manager or employee whose death would impair the future growth and success of the company is a key person and should be insured as such. Read more