Business Solutions

Business Needs Assessment (digital approach tool) Business Owner Retirement Business Valuation/Buy-Sell Review Family Business Planning Industry Marketing - Agriculture Industry Marketing – Healthcare Prioritizing Business Needs Strategic Alliances

Business Protection

ESOP Repurchase Key Person

Business Succession

Buy-Sell Strategies Transfer Strategies

Income Protection

Key Employee Retention & Retirement

Bonus Bonus - LLC Member Bonus - S Owner Bonus (Tax Exempt) Death Benefit Only Death Benefit Only (Tax Exempt) Deferred Comp - 457(b) and 457(f) Deferred Comp - Defined Benefit Deferred Comp - Defined Contribution Deferred Comp - Incentive Bonus Deferred Comp - Select Reward Deferred Comp - Select Reward (Tax Exempt) Deferred Comp - SERP Endorsement Split Dollar Loan Split Dollar

Legacy & Estate Planning

Charitable Giving Gifting Strategies Inheritance Equalization Private Split Dollar Special Needs Trust Solutions Estate Tax Reports

Key Person

Help your clients recover from the unexpected loss of top talent.

Oftentimes, the most valuable assets of any business are the key people who contribute most to its success. If their loss would create a financial burden that puts the business at risk, a key person insurance policy is a simple and efficient solution. With key person insurance, your business is the owner and beneficiary of a life insurance policy for each key employee chosen, which can include business owners. If the unexpected happens, the business receives funds, generally income tax free*, to help overcome the financial challenge of the loss.

Use the key person calculator to help determine how much life insurance coverage business owners and/or key employees may need and the approximate cost. For greater risk protection, get a quote for a Key Person Replacement disability insurance policy, too.

* If the requirements of the Internal Revenue Code Section 101(j) are not met, death proceeds from employer-owned life insurance contracts may be taxable as ordinary income in excess of cost basis.

Key Features

Immediate cash. This helps owners not worry about how they'll pay for the loss and replacement of a key employee.
Economical. Cost-effective term or permanent policies may provide significant death benefits relative to premiums paid.
Cash value potential with permanent policy option. Potential cash values can remain an asset on the balance sheet of the business—or be used for all business expenses including key employee benefit programs.

Solutions

Here are potential key person insurance solutions:

Life insurance products
In addition to key person life insurance, employers should consider protecting the business from the disability of a key employee with DI Key Person Replacement disability insurance.

Sales Ideas

Get inspired by these concepts, and then apply them with your clients to build your business.

Term Key Person Sales Idea (BB12372)

Highlights the benefits of covering key employees with a Term life insurance policy.

View (PDF) • Order

Videos

Key Person Insurance Video (BB12649)
Provides an overview of key person life and disability insurance for business owners.
View (2:00)

Emails

Key Person Video Employer Email (LF1646)
Share a brief video (BB12649) to start the key person life and disability insurance conversation with business owners.
Get email (OFT)

Note: For emails, you are responsible for complying with all CAN-SPAM legislation and maintaining your own opt-out database. Using these emails constitutes your agreement to follow our terms of use (BB10937).

Consumer Materials

Before the Sale

Business Protection Decision Grid (BB11280)
Use this tool with your clients to determine their business protection needs.
View (PDF) • Order

Key Person Insurance - Employer Flyer - customizable (LH160C)
This customizable flyer highlights how Key Person Replacement insurance and/or key person life insurance can help a business financially recover from the disability and/or death of a key employee.
View (PDF) • Customize

During the Sale

Key Person Calculator and Sample Outputs
Let our easy-to-use calculator help determine how much life insurance your clients may need on their most valued employees. The proposal will also include a quick quote for 10-, 15-, 20- and 30-year term insurance.

Key Person Calculator
View
Key Employee Life Sample Output for Owners (BB10466A)
View (PDF)
Key Employee Life Sample for Non-Owners (BB10466B)
View (PDF)
Key Employee Combo Life & IDI Sample Output for Owners (BB10466E)
View (PDF)
Key Employee Combo Life & IDI Sample for Non-Owners (BB10466F)
View (PDF)

After the Sale

Sample Key Person Resolution (BB10451)
The sample authorizes the purchase of key person insurance.
View (DOC)

GI Term - Key Person Notification Email - For Employees (LF1337)
Provide the employer this email template to use when communicating the consent form needed from their covered key employees.
Get Email (OFT)

GI Term - Key Employee Benefit Implementation Email - for Employer (LF1334)
Provide the employer this email template to use when communicating the enrollment process for their key employees.
Get Email (OFT)

GI Term - Key Employee Benefit Enrollment Email - for Employees (LF1335)
Provide the employer this email template to use when communicating the enrollment process for their key employees.
Get Email (OFT)

BMA Services Flyer (BB9441)
Outlines the added benefits employers and plan participants get from our administrative services through Business Market Administration (BMA).
View (PDF) • Order

Producer Materials

Key materials listed below.

IRC Section 101(j) Taxation Update (BB10051)

Use this thought capital piece to stay informed about IRC 101(j) and Notice 2009-48 and how you can help your clients stay compliant so death proceeds from employer-owned life insurance are income tax free.

View (PDF) • Order

Business Submission Checklist (DD849R)

Form that must be used when submitting Life applications to BMA to fund business solutions.

View (PDF)

Next Steps

3444413-032024