Insurance Review

As part of any exit planning process, it is recommended that a licensed insurance professional conduct an insurance review to determine if the seller:

  1. Is carrying too much, or the wrong type of insurance.
  2. Needs to change listed beneficiaries.
  3. Needs to restructure their insurance for new family members.
  4. Should implement an insurance backed buy-sell agreement.
  5. Could use insurance as a way to transfer part of their assets tax free.
  6. Should consider certain types of insurance to incentivize key employees to remain with the company.
  7. Should implement term insurance to protect the value of the business being sold until the sale date.
  8. Should establish income replacement insurance for their family.
  9. Should contract for disability insurance to protect both their family and the business.
  10. Should use insurance as a way to provided cash to pay for estate and gift taxes.