Protect your key people

If you are a business owner your employees are your biggest asset. Besides having benefits for medical and dental plans, mental health issues are a growing concern. Providing the right type of employee benefits is significant to employee commitment and corporate social responsibility. The health and financial wellness focus for your people says a lot about your organization to attract and retain essential workers. There are many plans to consider because a one size fits all will not be attractive to a diverse employee base.

Important items to keep in mind while looking for the right insurance benefits for your employees:
Prevention and intervention mechanisms
Single and family plans for health, vision, dental and mental health
Short- and long-term absence coverage
Employee safety
Employee wellness programs
Employee and family assistance programs
Drug and alcohol abuse recovery programs
Cost savings through group benefits

Fund a buyout agreement

Did you know that having the right insurance policy for your business is a proper planning tool to fund a buy or sell agreement?

A buy-sell agreement is a sort of “prenup” between business partners.  This plan outlines the agreement between partners to show the partner’s interest in the business that can be bought out by the other partner(s).

If the owner/owners pass away this is a cost-effective way to make cash available, provided that the owners do not have any incidents of ownership over the policy to avoid estate tax situations.  Business owners must always work with their legal counsel and tax specialists in the planning stage to ensure the policy is applicable and in good working order.

Another reason why a life insurance policy may be a proper planning tool for a buy-sell agreement is if the policy has cash value in a permanent life insurance, a buyout of the business after retirement may be possible with those policy funds.

Questions you may ask are:

  • How do you fund a buy-sell agreement?
  • Are buy-sell agreements legally binding?
  • How does buy-sell insurance work?
  • Who owns a buy-sell agreement?
  • What are the potential pitfalls?
  • What are the structural, income tax, beneficiary, and family law considerations?

Succession planning

Owning your own business has many challenges but also many rewards. There may come a time when you may consider giving up owning your business.  If so, you should be aware of some of the implications and needs for planning.

Things to consider for succession planning:

  • Efficient tax planning
  • Your family situation
  • Employee consideration
  • Reduce tax implications
  • Retirement planning
  • Insurance coverage

Group benefits

Group insurance benefit plans cover employees at a company.  These benefits are offered by the employer as part of a total compensation package in addition to a salary.  They offer comprehensive coverage such as health, vision, dental and life insurance packages.  Other examples of benefits that may be offered are disability income protection, long term care, profit sharing, pension, and retirement benefits.

An employer may pay for the full cost of these benefits or require their employee to pay a percentage towards the premiums.

Group insurance policies are purchased as a contract from an insurance company.  The premiums will be based on the number of employees within the organization and the amount and type of coverage offered.