Often times in business, principles will insure the lives of key people in their company to cover the expense of replacing a person upon death. Many times these face amounts are in the millions of dollars, with hundreds or even thousands being doled out monthly to cover the premiums.
Unfortunately, 99.9% of insurance agents and advisors are giving people the wrong coverage, and if you own a Key Person policy, a Business Continuation Plan, or a Buy/Sell plan, then odds are you have the wrong coverage too.
There are 149,000,000 policies in place right now in the United States, and less than 100,000 of them are the proper insurance for this kind of need. You see, most insurance companies will simply sell you what I call, "Death Insurance". They insure your pine box, and get your beneficiary some tax free cash. However for a business, this isn't going to cut it. Why? Because the insured has to die to use it....and there are 1,000 other things, that are 1,000 times more likely to happen, than premature accidental death.
Let's say for example you have Key Person coverage on an executive. You have him covered until the age he retires, say until age 65. Well, odds are he won't die. If he gets critically ill (cancer, heart attack, stroke, etc.) he may or may not be able to return to work, and he has a 70% chance of survival these days. What if he gets a chronic illness? Becomes disabled? These are all much more likely to happen than premature death, yet you still have the expense of having to make up for losses and find a replacement. Right? Basically, he doesn't die, and you've wasted tons of money for years. Well, I'm here to tell you that you're insuring against a 98% disadvantage.
However, there is a solution.
What if when your executive got ill, but didn't die, I walked into your office and handed you a check for up to 90% of the death benefit to spend however you see fit? Would that be okay with you?
You see, we cover the scenarios that other life insurance doesn't cover. We provide the money to heal, not to bury. We'll give you up to 90% of your total face amount of your policy, depending on the severity of the illness. Therefore, if your executive gets sick or becomes disabled, we'll pay you. This can make up for losses, give him/her time to heal, and even rejoin your team if possible in the future.
We offer LIVING BENEFITS, because we know how financially devastating illness can be on families and businesses. This is just as applicable for buy-sell arrangements, individual life, key person, business continuation plans, or a Home Continuation Plan. We don't cover in case you die, we cover in case you get sick, and LIVE.
That's the "BeneShield Difference."
So what should you NOT do in regards to life insurance?
Do NOT buy life insurance that a person must die to use, unless there is absolutely no choice in the matter.
Next time we'll get into how to turn this "expense" into a growing, Tier One Asset, for your business that gains value when the market goes up, and never loses when the market goes down.
Want to learn more about how you can protect yourself with Living Benefits?
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