Business Continuation Insurance

This type of insurance is designed to replace the economic loss associated with the death of employees, or as funding vehicles for ownership buyouts or transfers, or for various estate planning situations.

 

Business Continuation Life Insurance policies are company or organization funded and owned policies issued on the life or lives of employees whose demise would have a substantial financial impact on the surviving organization’s ability to function and prosper in its future.

 

These types of life insurance policies provide permanent coverage on the life of the insured.

 

A portion of the premium paid is credited to a cash value tax deferred cash accumulation account.

 

Business Continuation Life Insurance policies have a:

1. Named owner
2. Named insured
3. Named beneficiaries

These three different designations can be the same person, but in many situations they are not necessarily set up with the same designations. Which type designation to use depends on different variables and situations.

 

An individual, company, or organization can be the owner of these life insurance policies on another person's life only when an individual, company, or organization has an "insurable interest."

 

Generally, the death benefit payable to a corporate or organization beneficiary is income tax free, however, alternative minimum tax (AMT) might apply.

 

For a personalized solution for your client's needs please contact us at 866.452.3670, or email us at sales@pipaclife.com.