Protecting Your Business

Preserve the value of your business.

Planning for the unexpected can protect your business—and everyone who depends on it—when sudden challenges arise.

What would happen to your business if:

  • An owner or key employee became too sick or hurt to work?
  • An owner or key employee died unexpectedly?
  • An owner exited the business with minimal notice?

Talk to your advisor, they will help you find answers that won’t disrupt or derail your operations—or compromise the value of your business.  

Protection comes in many forms.

Working with Principal®, you can structure a business protection plan with the solutions your business needs most.

  • Key person life insurance policies generally pay an income-tax-free1 death benefit to the business, to help offset the financial hardship of losing an owner or key team member.
  • Key person replacement disability insurance provides funds for recruitment, training, temporary staffing costs, and other needs after a total disability claim.
  • Stay bonuses give key employees a financial incentive to stay on after the exit of a business owner.
  • Overhead expense (OE) insurance provides reimbursement to cover immediate overhead costs if the business owner becomes too sick or hurt to work.
  • ESOP repurchase plans utilize life insurance to provide necessary liquidity for satisfying the repurchase obligations of an Employee Stock Ownership Plan.

Help with preparing for the unexpected

Photo of a man working in his store.

Expect the unexpected: Protecting your business & life

You may have spent years building and nurturing your business, but are you prepared if you became too sick or hurt to work?

Man in an office working at his computer.

The Gap in Protection You Can’t Afford to Miss

Photo of a family working in their family-owned restaurant.

Could Everyday Expenses Close Your Doors?

1 If the requirements of 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. Death benefits and all life insurance guarantees are subject to the claims-paying ability of the issuing insurance company.

Disability insurance has limitations and exclusions.  For cost and coverage details, contact a Principal Life financial representative.

All guarantees and benefits of life insurance policies are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not backed by the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.