Could your business continue without a partner, a key employee - or even you? The Principal Financial Group® can help you implement business protection strategies to preserve, protect and promote the value of your business in order to better facilitate the continuation of and/or subsequent transfer to family members, key employees, other owners or third parties.
- Stay bonus - A technique for providing key employees with a financial incentive to stay with the business following the death of a business owner.
- Key person life insurance - A life insurance policy on a key employee in which the owner and beneficiary of the policy is the business. This serves as a simple and effective way to protect the business against the loss of that key employee with tax-free death benefits.
- Key person replacement disability insurance - A disability insurance policy on a key employee in which the owner and beneficiary of the policy is the business. If a key employee is lost due to a total disability, benefits can be used for recruitment and training costs, temporary staffing needs and revenue replacement.
- ESOP repurchase - The process of using life insurance to provide the liquidity necessary to fund the employer's repurchase obligation of stock distributed to employees through an employee stock ownership plan (ESOP).
- Overhead expense (OE) insurance - A disability insurance policy that provides a business owner with needed funds to pay the immediate costs of keeping a business open in the event he or she becomes too sick or hurt to work. With the Business Loan Protection rider, the owner is reimbursed for a covered business-related loan obligation in the event of a total disability.