Having just covered Term Life Insurance one can easily see a disadvantage in this approach. Premiums are never level and at some point will increase. Add the fact that there is no cash value accumulation and you have many disgruntled policy...

I considered naming this entry as Finishing Touches on Term Life Insurance. However, since we will be considering other forms of Life Insurance to fund your Buy-Sell agreement we will be comparing Term Life to the other types. So in...

Client says to me, "can you make my premium payments for Life Insurance in a Buy-Sell tax deductible, lower my premium payments, and make it income tax-free for at least a portion of the Life Insurance to me and partners?...

This form of Life Insurance provides coverage for a specified period of time, referred to as the term. Term Insurance has often been called temporary Insurance because there is no cash value accumulation, only the death benefit protection. This Life...

Several issues come into focus when we address funding a Buy-Sell in the event of a premature death. They revolve around time, taxes, and cost effectiveness. As was mentioned earlier, a majority of Buy-Sell agreements are activated due to premature...

We're just about in the middle of all the types of funding your Buy-Sell Plans. So before we get to the heart of the next sgment of funding the Buy-Sell, I thought it would wise to offer a brief summary. This...

The last few reports have dealt with the financing of your Buy-Sell Agreements, the heart of your Business Succession planning. We last discussed the use of a Private Annuity which is the sale of a business by the parent to usually...

A Private Annuity presents some similar characteristics to the Installment Method previously described. However, before we proceed a word of CAUTION is advised. This Private Annuity is NOT to be confused with a commercial annuity purchased from an Insurance company. ...

Previously we discussed the components in using cash to help fund your Buy-Sell Plan. We first spoke about establishing a SINKING FUND which accumulates a cash account over a period of time. Then we discussed using a LUMP SUM balance. If neither...

Keep in mind that to complete your Business Succession Buy-Sell Plan, funds must be available to buy the interests of an owner's business. In the previous chapter we listed the various means to accomplish this. Let's now examine one at a time. ...