For business owners and executives, life insurance isn’t just a personal financial planning tool. It’s a business asset — used to fund buy-sell agreements, protect against the loss of a key employee, and structure executive compensation packages that retain top talent. We handle both sides of that equation.
Personal Life Insurance
The basics first. If you have dependents, debt, or anyone who relies on your income, you need life insurance. The question is what type and how much.
- Term Life Insurance — Straightforward coverage for a defined period (10, 20, or 30 years). Typically the most cost-effective way to get a significant death benefit. Good for income replacement, mortgage coverage, or covering business obligations during a growth phase.
- Whole Life Insurance — Permanent coverage with a guaranteed death benefit and a cash value component that grows over time. More expensive than term, but the cash value is an asset you own and can borrow against.
- Universal Life — Flexible premiums and adjustable death benefits. More complex than term, but useful for business planning scenarios where coverage needs may change.
Life Insurance for Business Owners
Key Person Insurance
If your business has one or two people whose loss would seriously disrupt operations — the rainmaker, the lead engineer, the founder — key person insurance pays the company directly when that person dies. It gives the business time to recruit, reorganize, or wind down without a financial crisis on top of an already difficult situation. The business owns the policy and is the beneficiary.
Buy-Sell Agreement Funding
If you have a business partner, what happens to the business when one of you dies? A buy-sell agreement defines it. Life insurance is the most common way to fund that agreement — the surviving partner uses the death benefit to buy out the deceased partner’s interest, typically from the estate. We work with your attorney on the structure and handle the insurance side.
Executive Bonus & COLI Plans
Using life insurance to structure executive compensation has real advantages — it’s flexible, tax-efficient in the right structure, and creates a retention hook that 401(k) matches don’t. Section 162 executive bonus plans and corporate-owned life insurance (COLI) are tools we use for the right situation. These aren’t right for everyone, and we’ll tell you when they don’t make sense.
Our Approach
Life insurance is sold aggressively and often oversold. We don’t work on commission pressure. We do a needs analysis first — figure out what problem you’re actually solving — and then find coverage that fits. If you already have personal coverage that’s adequate, we’ll tell you rather than trying to replace it.
We work with multiple carriers, which matters in life insurance. Underwriting varies significantly between companies — your age, health history, and the type of coverage you want all affect who prices it best for your situation.
Common Questions
How much life insurance do I need?
A common rule of thumb is 10× your income, but that’s a starting point, not a plan. For business owners, the right number depends on your debts, buyout obligations, what your family would need to maintain their lifestyle, and what business obligations survive you. We build a number from actual inputs, not a formula.
I’m in decent health but not perfect. Will I qualify?
Probably, though the rate class you qualify for affects the premium. We submit to carriers that tend to underwrite your specific health history favorably. For complex health situations, we can shop informally before you complete a full application.
When does term vs. permanent make more sense?
Term when you have a defined obligation with a time horizon (mortgage, children’s education, buy-sell obligation). Permanent when the need is indefinite or when there’s a business or estate planning purpose that goes beyond income replacement.