Business Planning

Business owner clients face many challenges. Life insurance can help.

In today’s competitive environment, business owners face the challenges of:

Ensuring the continuation of their businesses, even after they’ve moved on.

Attracting and retaining quality people for the continued success of their businesses.

You’re in a unique position to help them make the important decisions today that can help ensure the future and financial security of their businesses.

Business Continuation

Many small, family-held businesses fail to survive beyond the first generation because the owners neglect to prepare for the disposition of their business at their death, disability, or retirement. A priority for many is to ensure the future of the business if the primary drivers of success die prematurely.

Life insurance can be used as a business tool to:

Help ensure the continuation of a business—beyond the current owner or owners.

Help ensure the business is sold at its fair market value.

Provide funds to a business owner’s spouse and heirs.

As part of executive compensation arrangements, to attract new talent and retain key employees.

Fund Buy-Sell Arrangements that create a ready market for an owner’s interest.

Provide Key Employee protection. When a key employee dies unexpectedly, the financial loss to a business can be devastating. When a life insurance policy insures a key employee’s life, the death benefit can be paid to the business and used to help meet debt obligations, offset lost sales, or cover the expenses associated with recruiting, hiring, and training a replacement.

Executive Compensation

Having the right executive compensation in place can help a business owner attract and retain key people. You can offer various plans, including those tied to life insurance. Many options offer benefits to both the business and key employees. There is a wide array of plan designs and funding arrangements that Prudential can help you to explore, learn about, and confidently present to business owner clients.

Start the life insurance conversation with business owners

Life insurance is frequently used to fund business continuation and executive compensation strategies. It’s a versatile financial instrument that covers the risk of premature death by providing an immediate death benefit and also offers an opportunity for income-tax-deferred cash value growth and tax-favored withdrawals and loans.