Achieving Long-Term Small Business Success Through Life Insurance and Employee Loyalty
Life insurance funds succession planning, deferred compensation plans and buyout capital for key employees. Succession planning is crucial for long-term small business success. Life insurance plays a major role in this process. If a business partner dies, becomes disabled, or leaves, it can create serious financial challenges. Owning life insurance on business partners helps avoid expensive loans and provides funds for a buyout to settle their estate. Permanent life insurance is a valuable asset because it grows tax-deferred, builds cash value, and offers a death benefit. This way, you can focus on running your business even during tough times.
Key Employees Deserve Retention & Reward Plans
A key employees departure will cause disruptions to your operations, lost revenue and client dissatisfaction. Key employees need to be rewarded with retention packages. Permanent life insurance offers a death benefit and cash value that serves as a deferred compensation benefit. The firm controls the terms of the retention package, and they can be used for the employee to purchase equity in the firm. Therefore funding a buyout for your retirement, also creating smooth succession planning.
A robust employee benefit package fosters loyal and productive employees. Disability, life and sick day benefits can be difficult for many individuals to afford as a stand alone policy. As a group benefit the total cost is less, allowing you to purchase benefits for your employees who otherwise would be uninsured. Since the benefits are tethered to their job, the value of the benefit can be perceived as greater than the actual cost.
Let Triathlon Partners ensure your small business success.