BMT Insurance Advisors works with firms to create custom insurance plans to meet the needs of their executives and employees.
Key Person Insurance
When a death or disability occurs, replacing a key person takes money and time. Key Person Life insurance offers a death benefit that can help cover financial losses that occur at the death of a key person. This helps assure continuity of the business for employees, customers and creditors. In addition, the death benefit from the policy can be used to recruit and develop a replacement for the previous key employee and the policy’s cash value may be available to the business through a withdrawal or loan, if needed.
Companies of all sizes have to contend with the unexpected crisis of losing a business partner or co-owner due to a long-term disability, critical illness, premature death, retirement and other events. To determine how the business will continue, it’s wise to have a Buy-Sell Agreement in place ahead of time. A Buy-Sell Agreement can either be a separate agreement or part of overall shareholder’s agreement. Its purpose is to protect the future of a business from the consequences of losing a co-owner. Under the agreement, the remaining co-owner or co-owners will purchase the business interest of the departing co-owner. In the event of death, this usually means the business interest is purchased from the deceased co-owner’s heirs.
Funding a Buy-Sell Agreement can be done in a number of ways, including the purchase of Life insurance. There are two ways to fund Life insurance: One involves a cross-purchase method; the other is an entity purchase or stock redemption method, depending upon whether the business is a partnership or corporation, respectively. We can go into detail how each method works and what would best fit your business model.
Executive Benefits/Voluntary Insurance Plans
We can provide both Executive Benefits plans and Voluntary insurance plans. Executive Benefits address the retirement savings gap confronting most of today’s higher-earning executives, and are designed to help them achieve their individual goals. We can review Deferred-Compensation plans, SERPs, and Executive Bonus Plans, Corporate Owned Life insurance, among other products.
Voluntary Benefits are additional benefits or products that can be added to a worker’s benefit package and can be either core or ancillary in nature. Voluntary Benefits are typically individual insurance policies that are employee-paid and workers can opt to apply for them during enrollment periods. Voluntary insurance policies enhance and complement an existing benefits package at no direct cost to the employer while helping employees improve Healthcare coverage and prepare for the unexpected occurrences of life. Insurance policies can include: Life, Disability, Critical Illness, Accident, Dental and Vision coverage. We are equipped with the expertise, experience and provider access to design plans suited for you and your employees.