Controlling What (and Who) Happens to Your Business

There are many challenges that you face as a business owner. Attracting and keeping top talent and being prepared to successfully address critical events, including the loss of a key employee or partner, are top concerns. Life insurance offers you several affordable solutions; explore the different types of policies that can help.

Then work with a BGA to uncover these and other ways that life insurance can help you to protect your business and your future.

Getting (and Keeping) Top Talent

It’s a competitive world; hiring good talent, and keeping it, can be challenging; life insurance can help.  

Competitive advantage.

Your business provides you and your employees that you select with extra income (a bonus) to be used to buy permanent life insurance. This is called an executive bonus arrangement. As a bonus, it is considered income to your employees, but income tax-deductible to your business, under IRC §162. And your employees may like that they get needed death benefit protection, plus potential access to money through a policy’s cash value.1

The arrangement can include “golden handcuffs.” This means that your employee must meet certain obligations, like staying with the company for a specified time, in order to benefit from the life insurance policy’s accumulated cash value. Note that “golden handcuffs” may impact the business’s tax advantages.

Share the costs, share the benefits.

Your business and an employee split the cost of a permanent life insurance policy, along with the cash value1and death benefit. This is known as a split dollar arrangement. It’s a relatively low-cost way to provide an extra, attractive benefit to an employee. It’s also a cheaper way for an employee to get needed life insurance coverage and potential access to cash value.

 

Life Insurance Can Provide the Protection You Need

You work hard so your business can thrive. You and others depend on it—including your family and employees. You’re aware that, in an instant, your livelihood—your business—could go up in smoke, or could just die a slow death.

You’ve protected your business with property and liability insurance. But have you insured your business’s future?

Life insurance can help. Learn more contact your BGA.

Business Owners Market Study

These insights give you an inside look at how your peers are ranking financial priorities for their business, employees and lifestyle, including some benchmarks to consider as you create your own priorities and action plan.

Key findings

Business protection

For the 5th survey in a row, business protection is rated the most important solution. Contact your BGA to learn more.

John Hancock Benefit Better

Take your small business benefit offerings to the next level

With unemployment rates at almost a 50-year low and a competitive labor market,* it can be challenging for small business owners to find ways to attract, retain, and reward talented employees.

John Hancock’s unique executive benefit featuring Vitality offers a comprehensive wellness component that rewards key employees for living a healthy life.

Learn more contact your BGA.

Executive Bonus Plan

Also called a “Section 162 Plan” provides a basic affordable method for small business owners to reward employees. The Employer pays premiums on a life insurance policy owned by the key employee(s).  The policy provides an immediate death benefit, and the policy cash values, which grow tax-deferred, can be used by the employee to supplement retirement income. Contact your GA to learn more.

Protect the future of your business

A buy-sell agreement funded with life insurance As an owner, you work hard for the success of your business, and you consider the well-being of your family and your employees when you make decisions. One of the most important decisions you’ll make is who will take the reins of your business in the event of the death, disability or retirement of you or a co-owner.
A buy-sell agreement can be vital to your financial future and the survival of your business. It is a buyout contract establishing the terms and fair market value for the sale of an owner’s interest in the business. A buy-sell agreement can help make sure your business continues without disruption. Life insurance is a cost-efficient way to fund your buy-sell agreement. It can provide a lump sum of cash that may be used to purchase a deceased owner’s business interest, generating immediate liquidity for estate taxes, an income stream for loved ones, or to meet other needs. Contract your BGA to learn more.

Take a deeper dive into Symetra Protector IUL

Are your clients looking for cost effective, yet flexible death benefit protection—with the added benefit of attractive accumulation potential? Then Symetra Protector IUL, with its customizable guaranteed coverage and enhanced performance features, is worth a closer look. Contract your GA for more information.

Four misconceptions about multipliers (and their fees)

Large-multiplier insurance products have garnered a lot of interest. But buried in the small print, their fees could wreak havoc for your clients. It’s not just “buyer beware,” but also “advisor take care.”

Arm yourself with the knowledge you need to navigate this ever-changing industry. Get our guide, “The impact of indexed account fees” to learn more about the four misconceptions about multipliers (and their fees). Contact your BGA to learn about other options Securian Financial may have for your clients.