The Focus 10 Life® Program is an employer paid benefit for all eligible employees in a covered class. Policies are typically owned by the employee or their trust, and the policy holder names his/her own beneficiary. Premiums are typically deductible to the Employer and taxable to the Employee.*
What is a Buy-Sell Agreement?
A Buy-Sell agreement is a legally binding document that stipulates what will happen to a business when a business owner or partner becomes disabled, dies, retires or decides to sell his or her interest in the company.
How does a buy-sell agreement work?
For Buy-Sell funding, typically the employer is both the owner and beneficiary of the policy. Upon the death of an owner, the company uses the life insurance proceeds to purchase the shares of the deceased owner, as stipulated by the Buy-Sell Agreement.
Focus 10 Life® can be an ideal vehicle for funding a Buy-Sell Agreement. A significant amount a life insurance can be acquired on a Simplified Issue basis.
Key Person Life Insurance
The untimely death of a key person – such as an owner, partner, or executive – often has a significant impact on a business. Replacing the expertise and knowledge of an essential individual can take time and money, and may even jeopardize the continuity of the business.
Key person life insurance can help the transition.The business is the owner and the beneficiary of each policy and will receive the entire death benefit.
A Focus 10 Life® plan is an easy way for an employer to acquire life insurance policies on the lives of key executives.
Address multiple needs with a single Focus 10 Life® Plan
The minimum number of covered lives under the Focus 10 Life® Guidelines is 10. Focus 10 Life may be a solution for a company who needs Buy-Sell or Key Person Insurance on a small number of lives. One Focus 10 Life® plan can be used to provide both Buy-Sell and/or Key Person funding for owners and a Fringe Benefit for non-owners.
*FOCUS 10 LIFE, Inc. cannot provide legal or tax advice. Clients should seek this information from their own advisors.
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