Life Insurance Strategies for Small Businesses

Overview

Life insurance has long been viewed as a safety net for spouses and  children because of its role providing financial protection in the event of a breadwinner's death. For many, the family market has largely overshadowed the use of life insurance in the business environment. However, life insurance also plays an important-and sometimes vital-role in helping businesses achieve their objectives as well.

This course examines the role life insurance plays in enabling business organizations to meet numerous objectives, including ensuring the financial health of the business and providing funding for nonqualified benefit plans. Accordingly, this course will examine how life insurance can provide compensation to a business organization upon the loss of a key executive, cash to fulfill the contractual promises made in buy-sell agreements, and funding for executive benefit plans.

Learning Objectives

Upon completion of this course, students will be able to:

  • explain the principal uses of life insurance in business organizations
  • describe the role and application of life and disability insurance in key executive insurance plans
  • identify the vital role of life insurance and disability insurance in ensuring the continuation of business organizations
  • illustrate how life insurance may be effectively used to fund supplemental executive retirement plans (SERPs)
  • explain the structure of IRC § 162 bonus plans
  • describe the basic design of a group life insurance carve out plan
  • explain how life insurance may be purchased under a split dollar plan

Designed For

Life and health insurance producers, financial advisors and practitioners
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