Northpoint Capital & Insurance Services

Email Address

info@northpointis.com

Phone Number

(855) 914-3210

Get A Quote
Follow Us :

Securing Your Business Future

Explore our Business Life Insurance solutions designed to secure your business's future. Learn how life insurance can protect your company's key assets and support succession planning.

Schedule A Call
Employee asking executive questions during presentation

Small businesses — there are approximately 31.7 million of them — comprise 99.9% of U.S. businesses and 41.7% of the country's private workforce employees.

Explore Your Options

Explore our Buisness Life insurance solutions.

Shop & Compare Plans

Review your options from some of the most trusted insurance carriers in your area.

Talk To A Liscesed Agent

Speak to a liscensed insurance agent for guidance and support when you need it.

Keep It Simple

We help make it easy to get started and apply for a plan - all in a simple, personal, and user-friendly experience.

Why Business Life Insurance?

Business Life Insurance is not just about providing financial support in the event of a key individual's death; it's about ensuring the ongoing success and viability of your business. Here are several ways how life insurance can be an indispensable tool for your company:

Business people and office life
Key Person Insurance:
This safeguards your business in case of the loss of a key employee whose expertise and knowledge are crucial to the company's operation. The payout helps mitigate financial losses during the transition period.
Schedule A Meeting
Executive Benefits: Leveraging Life Insurance
Businesses have the opportunity to use life insurance policies as a strategic tool to attract, retain, and incentivize key employees. This approach is increasingly important, considering that over half of U.S. workers, approximately 51%, report actively seeking new employment opportunities or keeping an eye out for job openings.
Schedule A Meeting
Buy-Sell Agreements:
Life insurance can fund buy-sell agreements, ensuring smooth succession and continuation of the business by providing the necessary funds to purchase the deceased owner's interest.
Schedule A Meeting
Previous slide
Next slide

Find The Right Business Life Insurance Solution

Key Employee Life Insurance:

  • Essential Protection: Key Employee Life Insurance safeguards a business against the financial implications of losing an indispensable employee whose expertise and contributions are vital for the company’s continuity.

  • Mechanism of Protection: This involves the company purchasing employer-owned life insurance on such key employees. The insurance amount, or face value, is determined based on the employee’s contribution to profits and the cost of replacing them. The premiums are paid by the business, which also serves as the policy’s beneficiary.

  • Benefits for the Business:

    • Financial Stability: In the event of the key employee’s death, the policy provides a death benefit that supports the business financially during the transition period of recruiting and training a successor.
    • Cash Value Access: The business may access the policy’s cash value for financial needs while the key employee is alive, under certain conditions.
    • Tax Advantages: Adherence to IRS guidelines ensures the employee isn’t taxed on the benefits, and the business receives the death benefit proceeds without incurring income tax, providing a tax-efficient way to manage this risk.

Executive Benefits:

  • Strategic Advantage: Businesses can use life insurance policies as a strategic tool to attract, retain, or reward key employees, capitalizing on the fact that over half of U.S. workers are on the lookout for new job opportunities.

  • Implementation Method:

    • The company provides a bonus to selected employees, which is then used to purchase a life insurance policy. This supplements the employee’s qualified retirement plans and group term life insurance benefits.
    • Double bonus arrangements may also be utilized to address the employee’s income tax obligations arising from the bonus.
    • The life insurance policy is owned by the employee, who also has the freedom to designate beneficiaries.

  • Small Business Benefits:

    • The premiums for the life insurance, funded through bonuses, are tax-deductible for the business.
    • The arrangement does not require IRS approval, disclosure, or ongoing annual reporting, simplifying the process.
    • Since this is not categorized as a qualified plan, there are no recurring administrative costs, and businesses retain the discretion to select eligible employees for this benefit.

Buy-Sell Agreements:

    • Critical for Continuity: The lack of a succession plan can detrimentally affect all stakeholders involved, with statistics showing only 12% of small businesses endure through the third generation. Buy-sell agreements offer flexible, tailored solutions that ensure stability, minimize disputes, and support seamless ownership transitions.

    • Mechanics of the Agreement:

      • Buy-sell agreements are binding contracts that require a business owner to sell their stake to the remaining owners or the business itself upon certain triggering events.
      • Life insurance policies are often purchased to fund these agreements, ensuring that financial resources are available when needed.
      • The specifics of policy ownership, the number of policies needed, and tax implications depend on the agreement type and must be professionally drafted.

    • Advantages for Small Businesses:

      • Guarantees that funds will be available to execute the terms of the agreement, maintaining business continuity.
      • Allows access to the cash value of permanent life insurance policies by the policyholder.
      • Policy features and riders can offer additional benefits, providing further financial flexibility and security.
     
     
     
     
     
Serious employees at meeting

A Foundation for Long-Term Success

Investing in Business Life Insurance is investing in the future of your company. It not only provides financial protection but also reinforces the foundation for long-term success and growth.

By choosing to protect your business with life insurance, you're taking a proactive step towards securing its continuity, safeguarding your employees, and preserving your legacy. Discover how our Business Life Insurance solutions can contribute to the stability and prosperity of your company. Contact us today to learn more and start building a safer future for your business.

Schedule A Meeting
Find an Insurance agent. Call us anytime!
+ (855) 914-3210

Choosing Northpoint Capital & Insurance means partnering with a firm that is committed to your success and security. Our team of experienced professionals is dedicated to providing personalized service and expert advice, ensuring that your insurance and financial planning needs are met with the utmost care and professionalism.

Facebook-f Linkedin
IMPORTANT LINKS
LATEST NEWS

Understanding Annuities: A Guide to Saving for the Future

Health Insurance: Prioritizing Your Wellbeing

Life Insurance: Securing Your Family’s Future

SUBSCRIBE WITH US
© 2024, Northpoint Capital & Insurance Services All rights reserved.