Business Life Insurance

Reasons for buying business life insurance:

Key Person Coverage (replaces loss of that person’s profitability)

Funding a buy-sell agreement

Permanent/Whole Life

With a permanent/whole life policy, you get equity building values that can supplement your retirement with tax-deferred growth and possible income tax-free loan withdrawals. Death benefits are income tax-free and no limit of years coverage.

Term insurance also has lower-level premiums and level coverage, but lacking in equity-building and has a limited time of coverage (10-30 years.)