Life Insurance Strategies for Small Businesses

This course examines the role of life insurance in enabling small business organizations to meet various objectives. Principal among these objectives are ensuring the financial health of the organization and providing funding for various nonqualified benefit plans. Accordingly, the course examines the use of life insurance to provide:
  • Compensation to a business organization upon the loss, through death or disability, of a key executive;
  • Cash to fulfill the contractual promises made in buy-sell agreements; and
  • Funding for various nonqualified plans.
The course includes the following chapters:
  • How Life Insurance Meets Small Business Needs
  • Key Executive Life and Disability Insurance Plans
  • Business Continuation
  • Supplemental Executive Retirement Plans
  • Section 162 Bonus Plans
  • Group Carve-Out Plans
  • Split Dollar Plans
  • Case Studies 
This is an advanced level course.  Upon completion, students will be able to:
  • cite the characteristics common to small businesses and explain their common needs
  • articulate the uses of life insurance in business organizations
  • explain the role and application of life and disability insurance in key executive insurance plans and in ensuring the possible continuation of business organizations
  • illustrate how life insurance may be effectively used to fund supplemental executive retirement plans (SERPs)
  • explain the purpose, structure and application of IRC § 162 bonus insurance plans
  • describe the basic design of a group life insurance carve out plan
  • explain how life insurance can be purchased under a split dollar plan