|
|
|
Asset Protection and Conservation
The Problem The
death, disability or serious illnesss of a business owner
can result in
- Immediate loss of income to the deceased owner's family.
- Disruption of management.
- Reduced profits.
- Creditors demanding immediate payment.
- Lack of cash to meet debts and settle other financial obligations.
- Difficulty in selling shares, especially at a price near true market value.
The Solution This solution is suitable for sole proprietors, partnerships and corporations. The solution is
- The business owner buys a policy to cover the events of his/her death,
disability and serious illness.
- When death, disability or serious illness takes place, proceeds from the insurance policy will be used to pay off business and personal debts.
- Thus, business and personal property can pass to his/her heirs at full value.
Please contact us for further
information.
Key Employee Incentives and Protection
The Problem The loss of a key employee to a competitor or death can result in
- Loss of business income and profits.
- Creditors losing confidence.
Credit becomes harder to get, loans are called in
and suppliers deliver goods on a "cash on
delivery" basis.
- Loss of important customers
and major clients.
- Additional costs to find and
train a replacement.
The Solution This
solution is suitable for sole proprietors, partnerships
and corporations. The solution is
- The business buys a policy to
cover the events of the key employee's death,
disability and serious illness with the business
being the applicant, owner, premium payor and
beneficiary.
- When death or disability or
serious illness takes place, proceeds from the
insurance policy will be used to replace lost
revenue, finance cost of replacing the employee,
and assure creditors that their loans will be
repaid.
- If a key employee leaves the
company, the policy is surrendered and the cash
accumulated is paid back to the business.
- If key employees remain until
the policy matures, the cash accumulated can be
used as an additional source of retirement income.
- The plan can also be used to
provide the employee with an income in the event
of total and permanent disability or serious
illness, and provide compensation to the employee's
family in the event of death.
Please contact us for further information.
Business Continuation
The Problem The death of a business partner can result in
- Ownership of the deceased's
share (but not the job) passing to the heirs.
- Difficulty in selling the
deceased's share at fair market value.
- Lack of cash to pay the
deceased partner's debts and other financial
obligations.
- Serious disruption of
management. Unqualified heirs may wish to become
active or they may sell ownership to an outsider
or even a competitor.
- Creditors insisting on
immediate payment.
- Loss of profits and
uncertainty about the future success of the
business.
The Solution This
solution is suitable for partnerships and corporations.
The solution is
- Execute a written buy-sell
agreement. The deceased partner's share will be
sold to surviving owners at a fair market value.
This market value can be periodically reviewed.
- Each shareholder is the
applicant, owner, premium payor and beneficiary
of the policy on each co-shareholder.
- In the event of a shareholder's
death or total and permanent disability or
serious illness, each surviving shareholder will
use the policy proceeds to purchase an equal
share of the former shareholder's interest.
This solution provides valuable
advantages :
- Guarantees sale of share of
partnership at a full and fair value.
- Provides a smooth transfer of
partner's interest at death or disability.
- Ensures that non-liquid stock
is converted to liquid income, providing a fund
for the benefit of the deceased's family.
Please contact us for further
information. |
|