Key-Person Coverage for Business Continuity

Financial Services, War For Talent

Life Insurance Planning for Your Business:
Do You Have the Right Protection in Place?

Losing just one key performer can destroy a bottom line

Without the right tools in place, your organization could face some major challenges should it lose a key member of the team. During a simple revenue analysis, a law firm determined that five attorneys were generating a majority of the firm’s income. Losing just one of these key employees would cost the firm about $1 million in annual revenue— an amount not easily made up.

Clearly, the firm needed a strategy to insulate them from this risk. The solution was a key-person life insurance policy on each of the five top performers for $1 million. This policy protects income flow upon the death of a critical revenue generator. Such a cushion helps secure the stability of the law firm and provides needed funds to help recruit and bring on new talent in the event of an unexpected loss. Ask yourself: Who can you not afford to lose?

Meet your new partner: your former partner’s spouse

Thousands of businesses change hands each year — and not always by choice. The death or disability of an owner or partner can force unexpected leadership changes. A properly funded buy-sell agreement can protect both the business and the families involved.

Consider this: A regional construction company has five equal owners. Collectively, the owners want to protect their company from disruption and effectively plan for their families. The corporate-owned life insurance policies do this by supplying 20% of the company’s value to repurchase an owner’s shares should an owner be unable to continue working. This enables all partners to retain their ownership and move forward with business as usual.

Contact Chris Henderson, Managing Director of M3 Financial to learn more.

Investment advisory services offered through Global Retirement Partners, LLC, dba M3 Financial, an SEC registered investment advisor.

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