Office: 979-267-0028 Cell: 832-859-3937

Business & Owners Insurance & Simplified Employer Pension Plans (SEPS)

Business Owner & Simplified Employee Pension Plans

Business Owner Benefit Plans: No matter what type of business, large, medium or small family-run business, it is important to protect all the hard work put into building a viable enterprise that won’t fold when something unexpected occurs. We offer multiple solutions for consideration to help achieve this goal. These are:

  • Buy-Sell Agreement
  • Key-Man Insurance
  • Simplified Employee Pension (SEP) Plans
  • Executive Bonus Plans (Section 165)

Buy-Sell Agreement

A Buy-Sell Agreement funded with Life Insurance covers a business owner/partner upon death to protect the business from an unplanned transfer of ownership and help surviving members of the family fund the continuation of the business, extending the life of your business.

A Buy-Sell Agreement helps avoid hardships on both colleagues and family, helping prevent long and arduous legal battles upon the departure of key personnel.

Contact Us Button

Contact us now to learn more about these creative solutions to securing the future of your business for your family.

Life Insurance helps fund a buy-sell agreement, avoiding expensive loans or unnecessary liquidation of assets.  This funding can be guaranteed and may be free from taxation. There are two types of funding agreements.

  • Cross-Purchase Agreement
  • Entity Purchase Buy-Sell Agreement

Each offer advantages and disadvantages and can be tailored for the specific needs of the individual business. 

Simplified Employee Pension (SEP) Plans

According to the IRS,

 “a SEP plan provides business owners with a simplified method to contribute toward their employees’ retirement as well as their own retirement savings. Contributions are made to an Individual Retirement Account or Annuity (IRA) set up for each plan participant (a SEP-IRA).”

A SEP-IRA account is a traditional IRA and follows the same investment, distribution, and rollover rules as traditional IRAs.”

With the passage of the Secure Act, changes have occurred effecting estate planning.  The change affects the vehicles used to transfer money from an IRA to something new, which we suggest could be tax friendly life insurance.

Key-Man Insurance

Key person insurance is a life and disability insurance policy on essential personnel such as executives, senior managers, project leaders and owners. The business becomes the beneficiary and also it pays the premiums and covers the costs.

Executive Bonus Plans & Section 165

An executive bonus plan can be a  simple method of providing a valuable benefit for business owners and key employees.  Life insurance policies that build cash value along with death benefit coverage and the policy’s potential cash surrender value.

An Executive Bonus Plan is designed to improve morale and retention of selected employees. The plan can be structured in multiple ways.  The company pays the premium and the employee can choose their beneficiary.  The employer receives the tax benefit.

Give us a call at 832-859-3937 to learn more or click here to contact us via email.

Let's Connect

Like and Follow us on Facebook

Connect and Follow us on Linked In.