For Your Business

Life insurance can provide protection for your business and family in several different ways.  Whether you are looking to ensure the survival of your business in the event of your death or the death of an important employee, or protect your family after you die life insurance can provide the answers.  If you have any questions or would like to discuss how this could help your business please call 203-237-7900, or click here to fill out an information form. 

Protect Your Most Valuable Asset

As a successful business owner, you have worked hard to reach your goals and it is probable that your business has become one of your most valuable assets. But, have you considered what will happen to your business and family should you unexpectedly die or become disabled? A buy-sell agreement can help solve these issues.

What is a Buy-Sell Agreement?

Buy-Sell is an approach used for sole proprietorships, partnerships, and close corporations in which the business interests of a deceased or disabled proprietor, partner, or shareholder are sold according to a predetermined formula to the remaining member(s) of the business. For example, a partnership has three principals. Upon the death of one, the two survivors have agreed to purchase, and the deceased partner's estate has agreed to sell, the interest of that partner according to a predetermined formula for valuing the partnership to the survivors. Funds for buying out the deceased partner's interest are usually provided by life insurance policies, with each partner purchasing a policy on the other partners. Each is the owner and beneficiary of the policies purchased on the other partners.
When a sole proprietor dies, usually a key employee is the buyer/successor. The sole proprietorship, partnership, and close corporation under the entity plan can buy and own life insurance policies on the proprietor, partner, or shareholder and achieve the same result as when an individual buys and owns the policies.

Have an irreplaceable employee?

Have that employee that we can’t do without?  What would happen to your business if something were to happen to that person?  Life Insurance can help protect you and your business. 

Key-Man Insurance

Key man insurance is insurance purchased on the life of an employer or owner of a company. The intent is to cover expenses incurred as a result of the death of a key employee.
Some examples are:
• lost sales or revenue
• hiring of interim staff until a permanent replacement is found
• Costs associated with hiring and training a replacement employee.
For example:
• $30,000 estimated lost revenue and sales
• $75,000 independent contractor costs as a temporary replacement
• $100,000 recruiter fees, advertising, and training of new employee
Term life insurance is generally appropriate for key man insurance as the insurance may only be required until the retirement of the employee. Occasionally the insurance policy is provided to the employee upon their retirement at which point they could convert it to permanent insurance (depending upon the policy).

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