Business Owner Strategies

You’ve worked hard to build your business. Let us help you solidify some important aspects.


Small businesses are the backbone of our economy. Small businesses comprise 99.9% of all US firms, 99.7% of firms with paid employees and 47.5% of private sector employees1. As a small business owner, you know how important your business is to your employees and your community. That’s why building protection into your business plan is one of the most important decisions you can make. Life insurance can help protect you and your partners and help ensure a smooth transition of ownership. It can also provide a way for employees to keep their families secure.

Let’s achieve these goal with sophisticated business planning using the solutions at my disposal. Here are some ways in which we can put business planning to work for you:

Business Owner Retirement – When you are ready to retire, after years of hard work, you want to enjoy your retirement. While you can always sell or rent your business to fund your retirement, you might want to do so when the terms are favorable to you and not when forced by needing money for retirement. There are special ways for Small Businesses to put money away toward retirement while gaining the potential for tax deductions and tax-deferred growth, through plans such as SEP, SIMPLE and Self-Employed 401(k).

Business Succession – If you own your business with partners  consider setting up a Buy-Sell Agreement. Upon a partner’s death, these plans go a long way in ensuring that the ownership transfers to the party or parties according to the owners’ wishes and that the funding is available to execute the design of the plan. Without such planning, these events can lead to significant business interruption or forced sale. The buy-sell agreement can be funded in several ways, including One Way Buy-Sell Plans, Cross-Purchase Plans and Redemption Plans.

Business Protection – If you have someone on your team you can’t be without – consider covering him or her with Key-Person Insurance. A key-person policy indemnifies the employer for the loss of one of its most important assets — a key person. Think about what would happen if one day this person’s ideas, talent, or leadership were suddenly no longer available. Would your business lose customers or revenue?

Employee Reward and Protection – Provide powerful benefits that will help recruit and retain employees.  

  • Consider providing employees with Group Life Insurance so they can have some financial security. The IRS allows employers to deduct premiums on term life insurance policies of $50,000 or under for their employees. Consult your tax adviser for tax advice2
  • Consider setting up an Executive Bonus Arrangement or an Economic Benefit Endorsement Split-Dollar Arrangement. These arrangements allow an employer to attract and retain key executives by offering them needed life insurance. 
  • If the retirement plans currently available through your company do not entirely meet the retirement savings needs of your employees and/or if you would like to provide salary continuation to employees in retirement, a Nonqualified Deferred Compensation Plan is a powerful tool. The gains in these accounts can grow tax deferred until they are withdrawn from the plan. Consult your tax adviser for tax advice2.


1Small Business Office of Advocacy, Frequently Asked Questions, August 2018,

2Neither New York Life Insurance Company nor its agents or affiliates provide tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.



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