7 Clever Uses of Life Insurance for Business Owners
Not many people say they love buying or the process of buying life insurance. Who wants to discuss about the eventual demise of oneself? There are certain situations which are reliant upon life insurance to create an insurgency of cash into a business when weathering the loss of a business owner. There are however, clever uses of life insurance by business owners that are predicated upon more than the business owner’s unfortunate and untimely death.
Here are just a sampling of clever uses of life insurance and if there’s ever been a reason to get excited about life insurance, this may help.
Tax Effective Planning:
Over-funding a permanent life insurance policy not only is a great vehicle to protect one’s business but also a very efficient way to get retained earnings out of your business. The cash value within an insurance policy grows tax-free and if you access the cash in the correct way, you can get the money into your hands personally in a tax-free way. This can take on several forms but most commonly as an Insured Retirement Plan.
Key Employee Retention: