Update Sept. 02 - 2010 All About "Business Life Insurance" Information By Insurance Experts

It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don't carry insurance, you would endured some hard times after that. You make sure you have insurance for anything importance, or anything that could prevent you from earning a living.

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What Happens If My Life Insurance Company Goes Out of Business?
By Ed Hinerman

Fair question - since over the past ten years we have seen some shocking things happen in business. Highly rated, highly respected companies biting the dust. What about Enron? Not an insurance company, but poor management of a large trusted company.
So, what if it had been an insurance company? What if it had been a life insurance company where you happened to have all of your family protection? What if it happened to be the company that had sworn it would fend off disaster for your family if you were to die prematurely? Enron just disappeared. Poof! Gone! Is that the same thing that happens when an insurance company goes under?
The good new is the answer is no. There really isn't any way to compare Enron with, say, Empire General went out of business a few years ago. A lot of my clients had policies with them so I got a lot of calls about what was going to happen. The truth is that Protective Life picked up their entire block of business and kept it intact, didn't change any of the terms (they couldn't by law) and those policies are fully in force today.
Maybe that wasn't a fair example because Empire General was part of the Protective Life Group to start with. But the same held true for Federal Kemper when they were purchased by Zurich, Zurich when they were purchased by Chase, MONY and US Financial when they were purchased by AXA Equitable and Travelers when they were purchased by Met Life.
With insurance companies the block of business has value because of the cash flow from premiums. I guess there should be some distinction drawn here between term insurance and non guaranteed cash value policies. With term insurance there aren't any moving parts. Premium and death benefit. If another company is looking at buying a block of business, a lack of moving parts, bells and whistles is a good thing.
With cash value policies, and specifically cash value policies that are not fully guaranteed, I think some concern about what happens if the company goes under is warranted. While it is as close to an absolute that the block of business will be purchased if it is all fully guaranteed policies, I honestly can't think of a reason that a company would buy a block of non guaranteed business unless the downside on that part of the business was dwarfed by the upside on the guaranteed portion.
Bottom line. If you have a guaranteed level term policy I wouldn't worry about your company. The only thing that will change if they go out of business is who you make the premium check to. By law everything else, the premium, term length and death benefit, has to remain the same.
If you have a variable universal life, or a universal life or whole life policy that is dependent on assumptions and not guarantees, I would switch to something fully guaranteed before you have to find out if it will survive your company's demise.
About The AuthorEd Hinerman has focused his attention and made it his priority to help people with health issues get life insurance they can afford. Visit http://www.hinermangroup.com for more information.
Ed blogs about his insights and tips on life insurance here http://www.hinermangroup.com/blog

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Article Source: http://EzineArticles.com/?expert=Ed_Hinerman

Update August 19 - 2010 All About "Business Life Insurance" Information By Insurance Experts

It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don't carry insurance, you would endured some hard times after that. You make sure you have insurance for anything importance, or anything that could prevent you from earning a living.

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How Key Man-Key Person Life Insurance Can Help Save Your Business
By David Goldenzweig

What is Key Man Life Insurance (also known as Key Person Life Insurance)?

Most companies employ at least one person who represents the key to the success of the business (often the owner of the company). The loss or death of that person could deal a real blow to the company and its ability to generate revenues to survive - someone else must be hired to carry on the same tasks performed earlier, and that expense, in addition to the loss of revenue, must be reconciled. Many owners therefore insist on buying life insurance to minimize the risk, and many lenders require that the business carry key person life insurance to protect their loans and investments into the company.

How does it work?

The key person must agree to the purchase of insurance on his/her life. The business typically owns the policy, pays the premiums and remains the beneficiary. The policy can be transferred to the employee if he/she leaves the company, or can be retained if the company is sold - the new purchasers may want to keep the insurance in recognition of the outstanding loans that may be secured to buy the interests of the insured.

Are there other reasons to have Key Man Life Insurance?

Key person policies are often used as well to support a buy-sell agreement between business partners. The proceeds can be structured to purchase the deceased person's shares or interests in the company. The agreement mandates that the deceased executive's estate sell its stock to the remaining partners/shareholders, and that the partners/shareholders purchase the interest for a specified price. The price should help establish the value of the business for estate planning purposes and calculating the estate tax upon death.

David M. Goldenzweig Goldenzweig Financial Group Haymarket, Virginia 20169 Toll-Free 1-877-656-1436 E-mail david@terminsurancebrokers.com Website - http://www.terminsurancebrokers.com Corporate and Personal Life and Health Insurance Life - Disability - Long Term Care - Employee Benefits Recommended Reading Insiders Tips For Reducing Spending Money Saving Tips And Ideas Covers Practically All Areas Of Household And Modern Living Expenditure Back To Insurance Contents Back To General Contents ( Home ) Back To The Top Article Source: http://EzineArticles.com/?expert=David_Goldenzweig

Update August 02 - 2010 All About "Business Life Insurance" Information By Insurance Experts

It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don't carry insurance, you would endured some hard times after that. You make sure you have insurance for anything importance, or anything that could prevent you from earning a living.

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The Role of Life Insurance in Family Business Succession
By Barry Milton

You've worked long and hard to build a business. You are now at a point where retirement isn't that far off and the idea of leaving the business to your kids is attractive. Even better, they are interested in taking it over. Now all you have to do is figure out how to deal with the succession process. Life insurance will pay a big role.

Mention the name IRS and nearly everyone will start grumbling. Unless you've gone through a "super audit", you haven't experienced anything even close to dealing with the agency on a business transfer after an owner has passed on.

The agency isn't really at fault. The tax code written by Congress is the problem. It calls for estate and gift taxes to be paid on the passing of an individual for any transfers made to heirs excluding the spouse. Put in English, this means there are going to be tax ramifications for transferring the business to your kids. Big taxes.

Even better, the payment of taxes is due nine months after the passing of the person in question. That might not sound too bad, but think it through. A business is an illiquid asset. How do you come up with a huge chunk of change for something that might make a lot of money, but is itself rather intangible? You can't. This is the reason the Los Angeles Dodgers were sold by the O'Malleys and the Miami Dolphins were sold by Joe Robbie's heirs. There was no other way to come up with the tax bill.

Most of us don't have businesses that are worth hundreds of millions of dollars. A business worth $5 million or so might not be as glamorous, but it is a lot easier to transfer. One way to come up with the cash to pay taxes is life insurance. The policy is taken out on the life of the owner. When they pass, the insurance company pays out a large sum that can be used to pay the taxes. The life insurance has to be positioned correctly in an overall estate plan, but it can be the key to keeping a business in the greater family instead of selling it in a panic to pay the IRS.

Ultimately, that is what you want right?

Barry Milton writes about succession planning and other financial planning subjects for UFCAmerica.com.

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Update July 16 - 2010 All About "Business Life Insurance" Information By Insurance Experts

It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don't carry insurance, you would endured some hard times after that. You make sure you have insurance for anything importance, or anything that could prevent you from earning a living.

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Is Inheritance Tax Due on Life Insurance Payouts?
By Marilyn Katz


Are Life Insurance Death Benefits Tax Free?
Actually, one of the big advantages of leaving money in the form of a life insurance benefit, is the fact that the US IRS grants it a very favorable tax treatment to these proceeds. Let me start off by admitting that I am not a tax professional. That is why I consulted the IRS website to get the full story on how death benefits would impact a beneficiary when they need to fill out their tax forms.
According to IRS.gov, the website that is run by the US Internal Revenue Service, you are not liable for insurance death benefits as a taxable expense, unless you purchased that benefit for money. This is true, even if those benefits were paid out by some type of accident or health insurance plan. You may, however, be liable for any growth to that death benefit.
Life Settlement Investors Must Pay Taxes
How do you purchase these benefits for money? These days, there is a transaction called a life settlement. In these, an investor actually purchase life insurance policies as an investment. The insured person gets a cash settlement which is somewhat lower than the actual death benefit. The investor becomes the new owner and beneficiary, and they hope to profit when they finally collect the proceeds.
So this is the exception, but otherwise, the IRS declare that life insurance proceeds are a tax free benefit. Again, that is why life policies are popular ways to leave an estate. It relieves the heirs, in many cases, of having to declare the money they get on their taxes.
Proceeds Are Tax Free, But Gains Are Not
Keep in mind, that the tax advantages only apply to the actual death benefit. If any gains are made on the money, these can be taxed. It is common for life insurance benefits to be paid out over time, and for the cash in the account to build up at a specified interest or market index rate. Another example might be a cash value policy that has actually accumulated a greater cash value than the death benefit. This growth may very well be taxable. So the tax advantage is limited to the actual amount of the death benefit.
Again, if you are unclear about the distinction, it is time to consult with a qualified tax professional.
Uses For Life Insurance Policies with Tax Free Death Benefits
People have a variety of uses for these policies because they provide a simple and tax advantaged way to leave an estate.
Leave money to children or grandchildren. Because of the reduced tax liability, this may be one of the best solutions for passing an estate on to the next generation.
Leave money to a favorite charity.
Compensate some heirs because a business will be passed on to only one heir. If Grandpa is only going to pass his bakery on to one son who has trained to be a baker, he can leave money to his two daughters to compensate them. This can be a fair way to avoid family disputes.
Compensate a family if a business partner will continue to own a business. Some partnerships purchase life insurance so that the surviving partner can continue the business. Meanwhile, the other partner's family can get compensated or bought out with the proceeds from a life insurance policy.Would You Like To Shop For Life Insurance?
If you think that a policy would help you plan for the future, it may be time to compare quotes and policies that meet your needs.
Can we help you find over 50s life insurance to help you protect your estate?
We would like to make it simple and quick for you to do life insurance comparisons with our fast, free quote forms.

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Update June 26 - 2010 All About "Business Life Insurance" Information By Insurance Experts

It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don't carry insurance, you would endured some hard times after that. You make sure you have insurance for anything importance, or anything that could prevent you from earning a living.

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Secure Your Life and Business Through a Corporate Insurance Company

By Mark John Daniel

Life is something which has to come to an end at certain point of time and no one knows when the time may come. Sometimes due to certain misfortune death can come all of a sudden. And likewise there is a great risk in running a business. Sometimes business may suffer a great loss due to sudden death of a key employee. And it is for these reason insurance of not only life is necessary but even business and many other products are equally important in order to repay any loss.

To get full security in life you can now have a golden opportunity to insure yourself as well as your home, pet, car, even business and all that can cause danger and make you fall in some kind of difficulty. A corporate insurance company is the best option for all in order to get full insurance for yourself and your personal property. Just what you have to do is select a policy according to your choice because corporate life insurance gives you the opportunity to get insurance starting from life insurance, to all types of insurance even automobile insurance.

Travel for many of us is a hobby where one has the urge to visit beautiful places but before you travel you must feel secured from inside your heart because no one knows what will happen tomorrow so it's better to buy travel insurance. Through travel insurance you will get different kinds of benefits that can make your travel easy as well as safe. While you are travelling and your car gets damaged due to accidents on the roads then your headache of getting your car repaired will be minimized through car insurance and more over if anybody gets injured by your car then if you have car insurance, it would be beneficial on your part because car insurance can help you to come out from the troublesome situation and give you relief from any kind of stress or tensions.

Today you can get different kinds of health insurance policies which can insure your health and protect you from any kind of troublesome situation. Your health insurance policy can give you coverage for the time when you want treatment for a particular disease i.e. all kinds of financial help in order to continue your treatment in the best possible way and this can make your family members to get relief from any kind of stress or tension. So your life, health and personal property are solely yours and it is you who can protect your asset through a corporate insurance company.

Compete Infotech - an online business promotion company with highly experienced SEO professionals and marketing stuffs for sites offering seo services. We are marketing agents for http://www.corporateinsurancecompany.com, provides the information of corporate insurance and services.

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Update June 06 - 2010 All About "Business Life Insurance" Information By Insurance Experts

It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don't carry insurance, you would endured some hard times after that. You make sure you have insurance for anything importance, or anything that could prevent you from earning a living.

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Key Man Life Insurance - Your Business is at Risk Without It

By Lorraine Benham

Key man life insurance will really help you keep your business going if you are faced with the death of a crucial employee central to the running of your company. Most employees can be replaced but often not quickly. When you have this type of insurance you have the funds to hire part time replacement staff or to add to the package you are offering to entice a comparable person into joining your business team.

Why is it needed?

Think of this scenario: your company builds custom designed yachts. You are lucky enough to have snagged one of the top half dozen yacht designers in America as your chief designer. Then he has a completely unexpected heart attack and dies. Your company is suddenly without its biggest drawcard. If you hold a key man life policy on this employee there are a range of ways in which those funds can be used to help you look after your business interests.

One of the major consequences of losing a key employee may be a buyout by an existing partner or the need to close a business down. Having funds readily available to spend on transitioning your business from how it has operated prior to the death to what is now required, is very useful. This is a major argument in favour of key man life policies.

If a company is large, investors need to have their interests protected in the event of a key employee dying. A key man life policy is a simple and straightforward way to safeguard those interests. It works by making sure the ongoing effective operation of the business is ensured if the policy adequately covers the impact of replacing and training a replacement employee.

What are the choices about what type key man insurance you take out?

There are different types of key man life policies available. One type is the standard whole life policy in which the value of the premiums paid accrues over time. Another type is a term life policy which has cheaper premiums and covers a key employee for a specific period of time but the value of those premiums does not accrue.

Whole life key man life policies do have specific advantages. As they have an accumulating cash value they give the business a handy line of credit or an asset against which a loan can be drawn. They can also be cashed out or the value of the policy sold to the insured person when they retire.

A term key man life policy is definitely cheaper than a whole life key man life policy. This makes them perfect for smaller businesses who want coverage without a high premium. They will get necessary funds if a key man dies but if that does not occur they are not paying too high a price to cover the risk of losing a key employee.

key man life insurance is held by the business that takes it out. The business pays the premium on the policy and the business is the beneficiary of the policy. This is because it is the business which is in need of funds if it has to cope with the death of a key employee. That key employee may have held a life policy in his own right, but that is an entirely separate matter. As with all insurance, make sure you get a quote from a reputable insurance company before proceeding.

For Which Life Insurance, information that's clear and useful and for FREE QUOTES on all Life Insurance, click here www.bestlifeinsuranceavailable.com

If you have a big need for straightforward, non technical descriptions of different types of Life Insurance before getting a quote, I've collected all the information you need.. Here's what I found out about Keyman Life Insurance, Lorraine Benham

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Update May 18 - 2010 All About "Business Life Insurance" Information By Insurance Experts

It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don't carry insurance, you would endured some hard times after that. You make sure you have insurance for anything importance, or anything that could prevent you from earning a living.

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5 Reasons Businesses Buy Life Insurance

By Robert C Eldridge Jr

Life insurance can be used by business to accomplish a lot of different needs. I will go over some of the popular uses and why businesses buy the life insurance.

Death and Losses

After a business owner dies, there may remain massive losses to the business as the owner might not only run the business but the owner also has relationships with people that can hurt the company financial after their death.

Collateral

A permanent life insurance policy with cash value may be used as collateral for a loan. What better way to secure a loan with an insurance policy with cash value. You can walk over to your nearest bank and ask the banker how much you can get for your policy. Life insurance policies are an asset class.

Retirement Plans

Some business owners purchase insurance policies and fund their policies as a way to use the cash value for future retirement needs. These policies will grow tax deferred and will taxed until you withdrawal the funds.

Buy-out

These insurance policies can be a great way to buy a partner out when someone wants to retire or to take control and acquire a greater percentage of the business. A buy out is a great way to buy out the interest of a business when the other partner dies. The funds can then be used to usually buy out the spouse of the other owner.

Key-Man

Key man or Key Employee insurance allows a business to buy insurance on a key employee and cover the cost of losing that employee. The loss of a key person to a business can have significant financial effects on the business. The business can now protect its financial interest in those employees who are important to the business.

Click the link below in the resource box to find out more about Business Life Insurance.

Visit http://www.annuitycampus.com for more information on Business Life Insurance.

Robert holds over a decade of experience as a multiline agent in multiple states and currently serves on the membership council of the National Association of Insurance and Financial Advisors.

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Update April - 27 - 2010 All About "Business Life Insurance" Information By Insurance Experts

It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don't carry insurance, you would endured some hard times after that. You make sure you have insurance for anything importance, or anything that could prevent you from earning a living.

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Using Life Insurance in Business Succession Planning

By Julius Giarmarco

Life insurance can play an important role in a business succession plan. Following are some of the common ways in which life insurance can be integrated with many of the tools, techniques, and strategies commonly used in business succession planning.

Estate Liquidity. Some business owners will wait until death to transfer all or most of their business interests to one or more of their children. If the business owner has a taxable estate, life insurance can provide the children receiving the business the cash necessary for them to pay estate taxes. Using life insurance (owned by an irrevocable trust) to pay estate taxes is particularly useful to business owners because business interests cannot be readily liquidated. Life insurance is also a much easier (and less expensive) alternative to deferring estate taxes under IRC Section 6166. The children receiving the business may also need life insurance to pay estate taxes at their deaths. Typically, the insurance policy will be owned by an irrevocable life insurance trust so that the beneficiaries will receive the death proceeds both income and estate-tax free.

Estate Equalization. A business owner can use life insurance to provide those children who are not involved in the business with equitable treatment. Leaving the business to the active children and life insurance (owned by an irrevocable trust) to the inactive children equalizes the inheritances among all of the children. It also avoids the need for the active children to purchase the interests of the inactive children - perhaps at a time when the business may be unable to afford it. Depending on the particular facts and circumstances, the insurance may be owned by an irrevocable trust for the benefit of the inactive children, and the insured(s) may be the business owner or the business owner and his spouse.

Buy-Sell Agreements. A properly designed buy-sell agreement can guarantee a market and fair price for a deceased, disabled or withdrawing owner's business interest; ensure control over the business by the surviving or remaining owners; and set the value of the business interest for estate-tax purposes. Life insurance is the best way to provide the cash necessary for the business or the surviving owners to purchase a deceased owner's interest. In many instances, the cash surrender value in a life insurance policy can also be used tax free (by surrendering to basis and borrowing the excess) to help pay for a lifetime purchase of a business owner's interest.

Nonqualified Deferred Compensation Plans. A nonqualified deferred compensation ("NQDC") plan can be used by a small business to provide members of the senior generation with death, disability, and/or retirement benefits. An NQDC plan may be particularly useful in those situations where the senior members have transitioned the business to the junior members and are no longer receiving any compensation from the business. An NQDC plan is also useful to ensure that key employees remain with the business during the transition period - a so-called golden handcuff. Because life insurance offers tax-deferred cash value growth and tax-free death benefits, it is the most popular vehicle for "informally" funding NQDC plan liabilities.

Key Man Insurance. Many family businesses depend on nonfamily employees for the company's continued success. To guard against financial loss due to the absence of an indispensable key employee, many companies take out key person life insurance.

Section 303 Redemptions. IRC Section 303 allows an estate a one-time opportunity to remove cash from a corporation (equal to the amount of estate taxes and administrative expenses), at little or no tax cost, through a partial redemption of stock. To ensure that the corporation has sufficient funds with which to accomplish the Section 303 redemption, the corporation can purchase a life insurance policy on the shareholder's life.

Hedge Strategy. Life insurance can also be used to provide a "hedge" against the business owner's premature death in connection with a grantor retained annuity trust. For example, if the business owner established a GRAT and died before the end of the set term, the life insurance could be used to pay the estate taxes on the GRAT assets that would be included in the business owner's estate. In addition, if a sale with a private annuity is used, life insurance could provide funds for the business owner's spouse (and/or other family members) since the annuity payments would terminate on the business owner's death. Similarly, life insurance could provide funds for the business owner's spouse and other family members should the business owner die prematurely after using a self-canceling installment note to sell the business interest. In all of these situations, it is advisable to have the life insurance owned by an irrevocable trust so that the insurance proceeds will escape estate taxes.

Family Bank. When the decision is made to leave the business to both active and inactive children, it is usually advisable to leave the active children with voting interests and the inactive children with nonvoting interests in the business. In addition, put and call options can be given. Generally, a put option given to the inactive children allows them to require the active children (or the business itself) to purchase all or a portion of their interest in the business at a set price and terms. Without a put option, there may be no practical way for an inactive child to benefit from owning the business interest unless and until the business is sold. Conversely, a call option given to the active children (or the business itself) allows them to purchase the business interests of the inactive children upon a set price and terms. Without a call option, there may be no effective way for the active children to avoid the potential conflicts that can occur between the active children who are receiving salaries and bonuses, and the inactive children who are not. By having the active children own life insurance on the business owner's life, a "bank" is created to provide the funds to satisfy any such puts and calls. Typically, the policy will be owned outside of the business entity, such as in a trust for the benefit of the active children or by a limited liability company owned by the active children.

THIS ARTICLE MAY NOT BE USED FOR PENALTY PROTECTION. THE MATERIAL IS BASED UPON GENERAL TAX RULES AND FOR INFORMATION PURPOSES ONLY. IT IS NOT INTENDED AS LEGAL OR TAX ADVICE AND TAXPAYERS SHOULD CONSULT THEIR OWN LEGAL AND TAX ADVISORS AS TO THEIR SPECIFIC SITUATION.

For more articles on estate and business succession planning, please visit the author's website and click on "Advisor Resources".

Julius Giarmarco, J.D., LL.M, is an estate planning attorney and chairs the Trusts and Estates Practice Group of Giarmarco, Mullins & Horton, P.C., in Troy, Michigan.

http://www.disinherit-irs.com

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Update April - 02 - 2010 All About "Business Life Insurance" Information By Insurance Experts

It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don't carry insurance, you would endured some hard times after that. You make sure you have insurance for anything importance, or anything that could prevent you from earning a living.

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Using Life Insurance in Business Succession Planning

By David Sayers

When you started your business, all that you initially considered was how to succeed and keep from failing. The biggest concern was failure, not in how to ensure that the business survived after you passed on. However, now that your business is successful, you want to make sure that either the business continues to survive, or at the very least, that your heirs are fairly compensated by the partners when they take over the business.

In the situation where the business has two or more partners, the partnership or shareholder agreement will typically have provisions in it where the other partner(s) will purchase the shares of the deceased partner upon their death. That way, the same core group can continue to control the company. Unfortunately, when the unthinkable event occurs, rarely will you have the available cash to buy out the partners shares. This would require you to take out additional debt, and this adds more risk to your financial position. The company probably doesn't have the necessary cash reserves to buy out their shares either. This type of situation can throw the company into financial turmoil at the very least, or possibly even into bankruptcy.

One way that you can avoid this financial nightmare is to purchase term life insurance on each of the partners, and the surviving company owners will be named as the beneficiaries. This gives the other owners the necessary cash to be able to purchase the deceased partner's share. This keeps the company stable, and it allows the partner's family to receive the cash right away. If your agent structures the policies correctly, the premiums on the policies may also be tax deductible. Insurance proceeds are also tax free. From a taxation perspective, this type of arrangement can allow you to use a small tax deductable expense in order to later use a large tax free sum of money to finance this transaction.

Another thing to consider is key man insurance. We always make sure that we have the proper amount of liability coverage, as well as coverage from loss or damage of the business property. However, we often forget to get insurance coverage on our most important assets: our key employees and owners. If one of your key employees or owners were to suddenly die, your business could be negatively impacted. You may also lose a lot of your expected income, and you will commonly incur a considerable amount of expenses while recruiting, hiring, and training an adequate replacement.

Using key man insurance will not replace the work that they did, but the proceeds will provide funds for the following: keeping the business running, offsetting the expected loss in revenue, and finding and training a new person to take over their role.

Additionally, many times when a business tries to get a large business loan, the bank will actually verify that the company has key man life insurance in place before they issue the loan. This protects the bank from loss by ensuring that the death of one of the main people will not cause the failure of the business.

By taking these steps, you can ensure the long term survival of your company, as well as the ability for the firm that you build to outlive you. Many companies can provide you with quotes on term life insurance and key man insurance.

Multiple companies can offer you quotes on a return of premium life insurance policies. Article Source: http://EzineArticles.com/?expert=David_Sayers

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Update Mar. 12 - 2010 All About "Business Life Insurance" Information By Insurance Experts

It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don't carry insurance, you would endured some hard times after that. You make sure you have insurance for anything importance, or anything that could prevent you from earning a living.

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Key Man Life Insurance and Exactly Why You Need It

By Frank Rodriguez

Almost anyone who is involved in business has heard of key man life insurance. But, they may find themselves unsure of what it is and why they need it. Some people are just not aware of how important it is to the very survival of their company. They may never even have considered the loss that could be associated with the death of key individuals.

Most of these coverages function similarly to term life insurance policies. with many types of life insurance policies that are utilized. The benefits, however, go to the business that pays the premiums, instead of a family member. This can help cover problems that arise if the covered person dies suddenly and causes losses to the company.

How much coverage is needed really depends on the importance of the person to business operations. The proper amount must be able to account for any losses that losing them could cause the company itself. You do not want to awake on day to discover that you have to go out of business, because you lost someone your company desperately relied upon.

That said, there are several factors that you have to think of, before buying one of these insurance policies. It is never easy to replace any key person in any business. Finding a permanent replacement could be a very difficult and lengthy process. This could mean you have to cover both the associated expenses and salaries. If they did not have a certain level of expertise, they would not have been in such an important position.

The benefits from these policies would be used to pay off large debts that the business had. Some could also be used to prevent the outside sale of shares that a particular person may have owned. Thus, there are quite a few essential ways that the pay-out can be of great benefit.

You could also find yourself being required to have such coverage, before some places will consider doing business with you. No one wants to put their money into something and find out that they do not have some sort of protection. Both lenders and other investors may require you to have such insurance coverage.

It is easy to find places that offer these insurance plans. They will do a thorough analysis of your key individuals and their importance in respect to your businesses day to day operations. They look at all the details and can properly help you figure out the amount of coverage you will need for each key player. Just like when you look for auto insurance, you can compare various prices and policy terms.

If you realize why you need it and just how it works, you understand why you need key man life insurance. If you do not have it, you may find yourself out of business, when you lose a vital employee. Operations can continue as usual, however, if you have proper coverage. The pay out can be used to alleviate all the expenses associated with having to hire someone new to fill their shoes. Anyone who has ever been faced with such a problem has never regretted having one of these policies.

You can learn more about key man life insurance by visiting the website. You will find many types of life insurance policies covered and evaluated.

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Update Feb. 19 - 2010 All About "Business Life Insurance" Information By Insurance Experts

It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don't carry insurance, you would endured some hard times after that. You make sure you have insurance for anything importance, or anything that could prevent you from earning a living.

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Term Life Insurance - A Safeguard for Small Business Owners

By Carrie Reeder

Term life insurance can offer protection for a small business and its owners in surprising ways. If you own a small business, you probably pay property and liability insurance, and are protected against fire, theft, flood and other disasters. But what would happen if you or one of your key employees was suddenly unable to work due to disability - or death? If something happens to you or one of your partners, what happens to your business? Who will pay outstanding business loans and other obligations?

That's where term life insurance comes in.

As your company grows, there are very likely to be one or two key people without whom you'd find it difficult to function. Besides you, there may be an accountant who understands the books inside and out, or the sales manager who drums up most of your sales. By taking out a term life insurance policy on each of those people, you can insure your company against the losses it would inevitably face if one of them were to become unable to work because of death or disability.

Why term life insurance? Especially for a young company, the lower premiums and limited term of coverage make more sense. As the company grows and becomes more stable and successful, a term life insurance policy can often be converted to a whole life key person policy - a life insurance policy that is specifically designed to cover the loss of a key person in an organization.

A term life insurance policy can also be used to cover partners in a business who agree to a buy-sell arrangement. In this case, if one partner dies, the death benefit is used as a 'buyout' to purchase his half of the company from the family. That way, the family of the deceased partner isn't stuck with a business in which they have no interest, and the surviving partner isn't forced into accepting the family as a partner.

Sometimes term life insurance isn't the best option. A whole life policy, for instance, allows you to use your investment in the policy to finance and fund projects, can help provide the basis for a retirement plan, or provide a cushion for the business to borrow against for expansion.

Whether you choose whole life or term insurance, though, key person insurance is a protection that your company shouldn't be without.

To view our list of recommended Life Insurance Companies, visit this page:
Recommended Life Insurance Companies. [http://www.ezerk.com/articulos.php?category=52]

Carrie Reeder is the owner of eZerk, an informational website with articles and the latest news about various topics.

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Update Jan. 30 - 2010 All About "Business Life Insurance" Information By Insurance Experts

It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don't carry insurance, you would endured some hard times after that. You make sure you have insurance for anything importance, or anything that could prevent you from earning a living.

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Business Life Insurance 12 - Advantages and Disadvantages of Common and Preferred Share Holders

By Kyle J Norton

As we mentioned in the previous article, we know that corporations generally are started by it's original shareholders who provide the start-up cash or assets in exchange for their shares. The corporation may eventually be owned by a large number of shareholders. In this article, we will discuss the structures of corporation shares and types of shares that corporation can issue. There are 2 types of corporation shares: common shares and preferred shares. These shareholders have certain rights:

1. Common share holders
a) Advantage
* right to share in growth of earnings and assets.
*right to sell shares.
* right to vote on Board of Directors and certain issues.
* right to attend company meetings and examine the books.
* right to annual report.
* receive a tax credit on Canadian corporate share dividends.

b) Disadvantage
* last to receive a portion of assets on wind-up of a company.
*dividends are only paid when declared and are related to amount of net earnings.
*dividends are paid after bond interest and preferred share dividends.

2. Prefer share holders
a) Advantage
* dividends are paid before common shareholders but after bond interest
* bonds holders come before preferred shares at the wind-up of the company.

b) Disadvantage
* Less indication of company ownership
* Corporation dividends are usually fixed by the share certificate and affected by the profitability of the company and the intent of the Board of Directors.

I hope this information will help you understand more of the right of corporation shareholders. If you need more information, please visit my home page at:

Kyle J. Norton
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
http://businessinsurance12.blogspot.com/
All rights reserved. Any reproducing of this article must have all the links intact.
I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

Article Source: http://EzineArticles.com/?expert=Kyle_J_Norton

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Life Insurance - How Small Businesses Can Cope

By Chimerenka Odimba

Many owners of small businesses want to get life insurance policies for their small staff as a way of encouraging them to be more committed to their job. This is a very good idea and should be encouraged. However, due to the hassles they ave to go through to get small business life insurance policies, many of these owners tend to let this idea go. What do we do about this?

The first thing is to find an easier way of doing this.

The first thing as with other types of policies is understanding the policy and then taking time to shop for the right insurer with the right policy for you.

If you have the time - which you may not, get all the information you can get on this policy by talking to as many agent as you can. You can also visit online quote comparison sites to see what they can offer you. Believe me, if you give it time, there are tremendous resource to help you sort through the maze out there.

For the small business owner who doesn't have the time, hire a broker to walk you through the process. Even with the broker, your eyes should still be open to understand what's going on. I personally do not like doing anything until I fully understand it. I guess in these days of fast guys, one can't be too carefully.

Be sure that whatever insurer you eventually settle with has a high rating. Be sure that you achieve your aim of doing good by your employees by getting a life coverage that is both adequate and affordable from an insurer that would be there when you need them.

if you've been discouraged before, don't be. Simply get up (for you to be reading this, you obviously have) and beging shopping for that life insurance policy that would work best for your small business.

How do I start my quotes comparison? Here are two great sites to start your quotes comparison. Life Insurance Quotes! Insurance Quotes! Chimerenka Odimba is the publisher Several finance based sites.

Article Source: http://EzineArticles.com/?expert=Chimerenka_Odimba

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Update Jan. 11 - 2010 All About "Business Life Insurance" Information By Insurance Experts

It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened causing hardship to the business owner and their family such as business store burned down one day, if you don't carry insurance, you would endured some hard times after that. You make sure you have insurance for anything importance, or anything that could prevent you from earning a living.

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Low Cost Term Life Insurance - The Most Used Low Cost Policies

By Donald Lusan

We all want to buy low cost term life insurance. It is just the wise thing to do. I was recently having a casual conversation with one of my neighbors about life insurance and was surprised to see the amount of premiums he was paying for term insurance.

I did some research for him and found the exact type of policy that he had for about half of the premium he was paying. This policy was from one of the better known life insurance giants...a company over 100 years old.

You can find low cost term life insurance from a reputable life company if you take the time to do the research. Look for the carriers that are rated A+ or better by the A.M Best company. A.M. Best does the research, that is their function.

The most popular term life policies are the 10 year term policy, the 15 year term policy, the 20 year term policy, the 25 year term policy and the 30 year term policy. Let us take a look at each and see how you could benefit from one or more of these low cost term life insurance policies.

10 Yr Term Life Insurance

10 yr term has a very low premium cost per $1000 of death benefit. If you need a policy to protect your loved ones for a short period of time then this may be the right policy for you. Let us say your youngest child is 15 years old and you expect that this child will graduate college by age 25 all you need to do is to calculate the amount of income you will need each month for the next 10 years and buy a policy sufficient to provide this income. The death benefit remains level for the entire 10 year period. It never decreases.

15 Yr Term Life Insurance

The 15 yr term plan can also be considered a low cost term insurance policy. It is usually used in a similar manner to the 10 year term but for a longer period. If your youngest child is age 10 then you would need a 15 year term policy to do the job of protecting your dependent children. The death benefit remains level for the duration and so does the premium.

20 Yr Term Life Insurance

Let us take a little time to look at the way to use the 20 yr term policy. As it is a term policy the premiums are quite low. This policy is probably the most exciting of all term policies. The reason is because it is usually bought at an exciting time in your life. You just got married or are about to. You logical thing to do is to buy a 20 year policy to protect your adorable spouse in the event of your death.

You and your spouse have an addition to the family so you each buy a 20 yr term insurance to protect your newborn child.

You start a business, whether it be a sole proprietorship, a partnership, or a corporation you know you need to buy some life insurance.

This policy has a level death benefit as well as a level premium for the duration.

25 yr term life insurance

You may say 25 years is too far to look. Well, let us look at the first situation we discussed. You expect your children to graduate college by age 25. If you are newlywed you likely don't have any children as yet or if you have a new addition to the family the 25 year term policy will work just fine for you. Premiums are level and so is the death benefit.

30 Yr Term Life Insurance

The 30 year term life policy is for people who look even further ahead. This is a low cost insurance policy that can protect your family right up until you retire and get a pension, that is if you are age 35 or older at the time of purchase. This policy works just like the other policies.

When in the market for low cost term life insurance you should keep in mind that the longer the duration of the term policy the higher the cost. The 10 year policy will cost less in premiums than the 15 year term and so on.

For more details go to: http://www.lifeinsurancehub.net/lifeinsurance-1.html
For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.
Donald's website is: LifeInsuranceHub

Article Source: http://EzineArticles.com/?expert=Donald_Lusan

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Financial Crisis Has Spike Life Insurance Buying

By Julie Viola

Every time there is an economic crisis, it is bound to have huge impact on all facets of our lives. From your grocery food items, mortgages, gas and fuel to life insurance have so many effects on how we do things. Life insurance companies may be having a good time right now as many people are looking for protection and security. Insurers are really benefiting from the financial crisis. The financial crisis has brought a spike on life insurance buying as more people realize that they need to be protected when there is economic turmoil and recession.

Life insurers are benefiting from form the financial crisis with a 9.5 percent increase in total premiums over the past year to September 30. This is according to The Nation Business Review article written by Fiona Robertson. According to the statistics from the Investment Savings and insurance Association, total premiums for in force life insurance policies increase to 1.512 billion dollars compared with 1.381 billion over that time. New policies sales has rose particularly strongly in the September quarter with premiums for new individual risk policies up to 21 percent to 51.78 million dollars.

It is very true that many people are flocking to get life insurance to protect their business and loves. One of the main reason for this is the many people who lost their jobs and do not have life insurance outside of their group insurance. I can imagine a boom for life insurance companies especially in the US. With people losing their jobs from almost sector of society, you can simply do the math and you can see that so many jobless people now are those that have been laid off because of rough economic times. To some people in the industry, they do not agree on the timing to get you insured.

While most people would always consider insuring as part of their financial road map, this is not the right time to get insured. But you cannot get people not to worry about what is going to happen since there is more pressure for everyone to get some form of protection and security. Protecting your family and business is foremost in the minds of most people because of the disastrous effects of inflation and deflation. Economic hard times mean a lot pressure from your work to perform and produce more and in the process stressing out yourself. Being too stressful can have so many health risks that can render you incapable of working and worst die of heart attack or stroke.

The rush to get financial protection and security at times like this has to do a lot with the health issues of many people. Many people are getting sick or stress at work and some eventually take short term leave or long term leave of absence because of medical reasons. When people are push to the limit and with so many problems with your mortgages, credit card debts and loans plus your regular bill payments, it takes its toll on anyone. When all these factors are happening at once, people run for cover so to speak. And the best that you can do is to protect and secure your business, family and love ones.

With all the health and other issues that mentioned that affect every individual during financial crisis, one should not wonder why people are flocking to buy life insurance from amongst the many life insurance companies. It has indeed spike the rate of buying policy coverage in the last little while since the economic downturn started. Whether some quarters are advising people that this is not the best time to get insured, you cannot prevent people who may be panicking over the situation. The statistical numbers do not lie and it really showed the spike or surge in people getting policy coverage.

If You Want To Buy Life Insurance During Financial Crisis and Know More About Life Insurance Companies, Go To JGVFinance.com For More Guide and Information In All Your Fnancial Isssues and Concerns That Matters To You And Your Family.

Article Source: http://EzineArticles.com/?expert=Julie_Viola

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