It’s already difficult for family and loved ones to cope with the loss of a loved one. Having a proper death benefit ensures that families have financial stability and not additional pain and uncertainty.
For decades, individuals have focused on growing their tax deferred retirement accounts, creating a retirement time-ticking tax bomb. The more savvy tax conscious individuals create a source of tax free income for the future through cash value life insurance.
Tax benefits alone isn’t the only reason why life insurance is a great tool to fund a Buy-Sell agreement, but it’s also a way of funding these legal agreements without taking lump-sum amounts from a business’ operating account. Not to mention, owners like to be able to recuperate in dollars some of the value of losing a key partner in the event of death.
Otherwise known as “Golden Handcuffs”, it encourages highly compensated talent to remain with your organization by deferring compensation and benefits through Cash Value Life insurance for a minimum specified period.