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Products and Services
for Business Owners
Business Overhead Expense
A business owner seldom thinks
about the effects disability has on their business. If disability strikes,
are you prepared to pay the ongoing business expenses? If you're disabled,
everyday expenses can chip away at the foundation of your business. A
disability overhead expense policy helps prepare for this contingency.
As the name implies, a disability overhead
expense policy reimburses the owner for covered overhead expenses up to a
specified limit during a disability. It covers expenses like:
- Lease, rent or mortgage payments
- Utilities
- Property taxes
- Liability insurance
- Accounting and legal services
- Trade dues and subscriptions
- Other fixed expenses
Benefits
of an Overhead Expense Policy
Helps meet routine business expenses and allows the business to remain
open. Assures customers, creditors and employees of business
continuity. Policy premiums are tax-deductible as an ordinary and
necessary business expense.
A
Business Overhead Expense policy can
be tailored to fit your needs. There are many options available. For more
information contact us at 1-800-350-8005, extension 8153.
Disability
Buy-Out
Many businesses plan for the death
of a business owner but fail to plan for the financial exposure that
occurs in the event of disability. When the owner of a small business
becomes disabled, the results can be devastating. Would your business
survive if you or one of your partners became disabled and were unable to
work?
A disability buy-out agreement helps you
prepare for this contingency before it becomes a reality. The disability
buy-out agreement is either between the business owners themselves or
between the owners and the business organization. The agreement
establishes a predetermined price and a buyer for the business interest.
Disability buy-out insurance is commonly used to provide the funds needed
to fund the buy-out.
Benefits
of a Disability Buy-Out Agreement
- Assures a definite price and buyer under
mutually agreeable conditions.
- Creates an automatic market for the
business interest.
- Assures customers, creditors, and
employees of business continuity.
- Business control retained by active
owners.
- Assures funds are available to execute
the purchase.
Funding
the Disability Buy-Out Agreement
To fund a disability buy-out agreement,
business owners may use one of four options:
- Current Cash Flow -- This option may
require a huge increase in profits to avoid a significant drain on the
business.
- Sinking Fund/Sell Assets -- Since most
businesses cannot save enough money for a "sinking fund,"
selling assets is the more likely scenario. Unfortunately, this may
leave the business vulnerable at a critical time.
- Borrow Funds -- Borrowing can be a very
costly solution. Plus, because of the unsure nature of the business
after an owner's disability, it may be difficult to qualify for a
loan.
- Insurance -- Disability buy-out
insurance is the most cost-effective solution. The buyout is funded
immediately, at minimal cost to the business. Disability insurance
provides essential funds for the business at a time when the business
itself must recover from the loss of a key contributor.
A
Disability Buy-Out policy can
be tailored to fit your needs. There are many options available. For more
information contact us at 1-800-350-8005, extension 8153.
Key
Person Insurance
Every business has key employees
critical to the success and profitability of the business. What would
happen to your business if one of your key employees died? Key employee
insurance protects your business from the financial impact of losing a
crucial employee.
Key employee insurance helps you and your
business by providing funds when a valuable employee dies. The business
pays all the premiums and is the beneficiary of the life insurance policy
on the key employee's life. If the employee dies, the proceeds are paid to
the business to use as it wishes. The benefit, which is tied to the value
you've placed on your employee's impact to the bottom line, can be used to
hire and train a replacement or to pay other business expenses.
Benefits
of Key Employee Insurance
The company receives needed funds which help meet financial
obligations and train a replacement.
While the employee is alive, the cash value
of the policy is available for the business to use in a variety of ways.
Creditors may be more apt to extend credit
if the business has protected itself against the loss of a key employee.
Death proceeds are received income
tax-free.
Key Person Insurance coverage can
be tailored to fit your needs. There are many options available. For more
information contact us at 1-800-350-8005, extension 8153.
Other Plans
Today there are numerous options and plans for
business owners. At Bollinger we can work with you. These are a just a few
of the financial strategies we can help you with:
- Dual Benefit Plans
- Deferred Compensation Plans
- Split Dollar Plans
- Buy-Sell Planning
- Exit Strategies for Business Owners
- Salary Continuation Planning
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