Business Protection
Insurance-based continuity strategies can provide business liquidity when the death of a covered owner or key employee creates a financial disruption.
The death or loss of a key owner or employee can create revenue, succession, debt, and staffing challenges. Key-person and business-owned life insurance may provide liquidity to support a transition, while buy-sell and executive-benefit arrangements should be coordinated with qualified legal and tax professionals.
Business-protection reviews may be useful for:
Partners and family-owned firms evaluating key-person exposure, succession funding, or buy-sell insurance needs.
Businesses that depend heavily on specialized employees, rainmakers, founders, or other people whose loss could materially affect operations.
Employers exploring insurance-based executive benefits with appropriate legal, tax, and compensation-plan coordination.
We identify the people and financial obligations whose loss could create a measurable insurance need for the business.
Where appropriate, we compare available key-person, buy-sell funding, or executive-benefit insurance options and explain policy terms and tradeoffs.
We coordinate insurance implementation with your attorney, CPA, plan administrator, or other qualified professional when legal or tax structuring is involved.
In a common key-person structure, the business applies for, owns, and pays premiums on coverage for an insured key person and is the beneficiary. Insurable-interest, notice-and-consent, tax, and employer-owned life-insurance requirements must be satisfied. Death-benefit tax treatment depends on the structure and applicable law.
An executive-bonus arrangement may allow an employer to pay compensation that the employee uses toward an individually owned life-insurance policy. Whether the employer may deduct the compensation depends on applicable tax rules, including whether compensation is reasonable and properly reported; consult a qualified tax professional.
Split-dollar arrangements allocate policy benefits, premiums, and rights between parties under a formal agreement. Ownership, tax treatment, imputed benefits, exit provisions, and policy economics are structure-specific and should be reviewed with qualified legal and tax professionals.
Accounting, reporting, and administrative requirements depend on the strategy selected. We explain the insurance mechanics and coordinate with your accounting, legal, or tax professionals before implementation where appropriate.
Ready to Start?
No pressure. No product quotas. Just an insurance-focused conversation about key-person risk, business liquidity, and continuity needs.
Important: Insurance-product guarantees are subject to contract terms and the claims-paying ability of the issuing insurer. Indexed products do not directly invest in a market index. Caps, participation rates, spreads, charges, loans, withdrawals, surrender schedules, and optional rider costs can affect results. Tax treatment depends on applicable law and individual circumstances. Policy loans and withdrawals reduce cash value and death benefits and may create tax consequences. Estate documents, debt restructuring, tax matters, and financial-aid rules may require qualified legal, tax, credit, plan-administration, or other professionals. Latimore Life & Legacy LLC provides insurance education and licensed insurance services, not legal, tax, securities, investment, or debt-settlement advice.