Key Person · Buy-Sell · Executive Bonus

One Unexpected Death Can Destroy
A Business Built Over Decades.

Business life insurance protects your company, your partners, and your key people — so the business continues even when the unthinkable happens.

70%
Small Businesses Fail After Owner Death
Without a succession plan in place
$0
Buy-Sell Funding Without Insurance
Surviving partners must liquidate or borrow
98%
Texas Businesses Are Small Businesses
Fewer than 500 employees — all at risk

Your Business Protection Shelf

Three distinct business scenarios. Three life insurance strategies that address each one.

Protect the Business

Key Person Insurance

Protect revenue when a critical person dies

  • Business owns and benefits from the policy
  • Covers revenue loss from key employee death
  • Funds recruitment, training, and transition costs
  • Available as term or permanent coverage
  • Helps maintain credit lines and investor confidence
  • Premium may be deductible (consult your CPA)
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Protect Ownership

Buy-Sell Agreement Funding

Pre-fund the buyout when a partner dies

  • Each partner insures the other(s)
  • Policy benefit funds the deceased's share buyout
  • Surviving partners retain full ownership
  • Prevents family members from becoming partners
  • Establishes fair business valuation in advance
  • Entity or cross-purchase structure available
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Retain Key Talent

Executive Bonus Plan (162)

Reward key executives with tax-advantaged life insurance

  • Business pays premium as a bonus
  • Bonus is tax-deductible to the business
  • Executive owns a permanent policy (Whole Life or UL)
  • Cash value builds tax-deferred for retirement
  • Powerful recruiting and retention tool
  • Simple structure — no plan documents required
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The Process

How We Build Your Business Protection

01

Business & Risk Assessment

We review your business structure, ownership, key person roles, outstanding loans, and succession goals. We identify the vulnerabilities that insurance must address.

02

Strategy Selection

We recommend the right combination: key person coverage, buy-sell funding, executive bonus, or a multi-strategy approach — with carrier recommendations and premium projections.

03

Underwriting & Approval

Your application is submitted and underwritten. For business policies, we coordinate corporate resolutions, consent forms, and business financials as required by the carrier.

04

Annual Business Review

Business valuations change. Key people evolve. We review coverage annually to ensure your protection keeps pace with your growth — and adjust when ownership or roles shift.

Gap Finder

Is Your Business Already Covered?

Most business owners assume their business is protected — until they check. Walk through these questions. Every "no" represents an uninsured gap in your business continuity plan.

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  • Does your business have key person coverage on every owner and critical employee?
  • Is there a funded buy-sell agreement that would activate if a partner died tomorrow?
  • Could your business survive 6–12 months without your top revenue producer?
  • Are all outstanding SBA or bank loans guaranteed personally by an owner with life coverage?
  • Has your buy-sell coverage been updated to reflect current business valuation?
  • Do you have a retention strategy for key executives beyond salary alone?
  • Have you reviewed your coverage in the past 12 months?

Business Life Insurance FAQ

What is key person insurance and who qualifies?

Key person insurance is a life insurance policy owned by a business on a critical employee or owner. The business pays the premiums and receives the death benefit. It protects against revenue loss, loan defaults, and operational disruption when a key individual dies. Any person whose loss would significantly impact revenue or operations qualifies.

How does a buy-sell agreement work with life insurance?

A buy-sell agreement is a legal contract between business partners that dictates what happens to ownership when a partner dies. Life insurance funds the buyout — meaning the surviving partner(s) receive the death benefit and use it to purchase the deceased's ownership stake from their estate. Without life insurance, this funding must come from personal savings, loans, or business assets.

Is the executive bonus plan (Section 162) tax-deductible?

Yes. Under IRC Section 162, a business can deduct the bonus paid to fund an executive's life insurance as a reasonable business expense. The executive includes the bonus in their taxable income, but the policy's cash value and death benefit typically more than offset this. Consult your CPA for your specific situation.

How much key person coverage does my business need?

A common rule of thumb: 5–10x the key person's annual compensation, or an amount equal to the revenue attributable to them. For business owners, coverage often equals the business valuation or the outstanding business loans they've personally guaranteed.

Your Business Needs a Plan.

Business life insurance strategies are complex. Our licensed advisors specialize in Texas business cases and will design a plan around your specific structure.

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