Financial Management: Life Insurance

What are financial management strategies?

Financial management strategies are an important aspect of any business plan and enable business owners to make sound business decisions. Life insurance can be used as one financial strategy to help meet short- and long-term business objectives.

How is life insurance used?

Life insurance pays a death benefit, generally income tax free, to beneficiaries upon the death of the insured. In addition, the cash value in a life insurance policy can be accessed for a range of business cash flow needs.¹ Life insurance can provide you with the flexibility to manage through the ups and downs of the business lifecycle and provide funds to respond to expected and unexpected challenges and opportunities.

What are the benefits of life insurance?

Life insurance provides you with peace of mind in knowing that your family and business are protected in the event of death, as well as cash value, which grows tax-deferred, what can provide a valuable cash flow safety net should you need it.

What are the different types of life insurance products that can help meet the financial management needs of your organization?

• Corporate- and Bank-Owned Life Insurance (COLI/BOLI)
  COLI/BOLI is life insurance purchased and owned by a company/bank that can be used to offset a variety of pre- and post-retirement employee benefit obligations.

• Universal Life Insurance
  Universal life insurance provides lifetime death benefit protection along with flexibility that gives you choices as your needs and finances change. It offers options such as coverage amounts that may be increased or decreased, and premiums that you can vary based on your finances.

• Whole Life Insurance
  Whole life insurance provides protection for a lifetime. As long as you pay the premiums, the death benefit will be paid. It offers a combination of guarantees that you can’t find in other forms of life insurance, including guaranteed premiums that will not increase, a guaranteed death benefit and guaranteed cash value growth, providing the premiums are paid on time and certain requirements are met.

Prefer to speak to someone about life insurance?

• Talk to a Financial Professional

 

 

¹ Access to cash values through borrowing or partial surrenders can reduce the policy's cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.