While most business owners realize the benefits of corporate-owned insurance, many do not realize that flexible life insurance products such as universal life can provide them with the protection they need as well as a source of cash for business purposes.
Most business owners require insurance to:
- Minimize their corporate tax bill
- Fund a buy-sell agreement
- Cover the loss of a key employee
- Secure a loan
- Fund a capital gains liability
With flexible plans like universal life, you have the option to pledge the Cash Value as collateral for lines of credit (or other loans) from third party lenders. this allows you to do one or several of the following:
- Seek out new business opportunities
- Expand your businesses or pay for other operational expenses
- Provide a source of supplemental retirement income for key employees
- Access a source of cash for emergencies
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Courtesy of BMO Insurance