• When permanent life insurance is used, the business (as owner of the policy) has access to cash values during the life of the insured.
  • Accumulated earnings tax will not accrue if life insurance is purchased to reasonably compensate the business for a loss.
  • The business can receive an income-tax free death benefit upon death of the key person, thereby providing liquidity precisely when the need arises.
  • Optional disability riders are available that waive premiums in the event of the insured’s total disability.
  • A Business Exchange Rider may be used to substitute a new insured upon the key person’s retirement (subject to insurability).