If you can say no to the following five scenarios, you do not need any life insurance.

Scenario #1 – When you die, it’s okay if your business dies with you.

You are the owner of your very own privately-held company.  You started it, grew it, and made it successful.  You own the majority, if not all of the stock.  When you die (and you will), it doesn’t matter if the business continues.  Your stock’s value goes to your heirs, and they don’t care about cashing in on the value of the stock.

However, if you want the business to continue, and your heirs do need the money from your equity in the business, then you need to find a way today to liquidate your stock when you die.  The best way to do that is to fund the value of the stock with a Buy / Sell Insurance policy.  Simply put, the value of the policy pays for the shares of the stock, and the proceeds go to your heirs.  The stock returns to the company so the management team can continue on after you are gone.

Scenario #2 – I can absorb the loss of key employees because my cash flow and profits are so strong.

Your revenues are growing, your headcount is growing, and your profits are growing.  Critical to the success are the three people who have been with you from the beginning – your VP of Ops, VP of Sales, and your CFO.  You wouldn’t have the success you have without them.  But, if you lost any one of them, you could easily absorb the loss as you seek a replacement.

However, if operations, sales, or planning and control would suffer in the 6-12 months it takes to find and develop a qualified replacement, you might consider Key Man Insurance on your essential personnel.  The Key Man policy covers the costs of recruiting, hiring, and developing the replacement, and any projected operational losses during that same time frame.

Scenario #3 – We’re a great place to work, and we don’t need any incentives or programs to attract great people.

Your business, culture, and compensation programs are unmatched in the marketplace.  Turnover is virtually non-existent, and highly qualified people are lining up to apply for a job.  If this describes your company, congratulations.  You have broken the code on attracting and hiring great people in a highly competitive hiring environment.

However, if you are like most businesses that struggle to find and keep great people, some help could be useful.  Consider Life Insurance as part of a defined benefit retirement plan.  In essence, the company purchases policies that exist to fund the retirements of your people.  This type of benefit perk would be a differentiated advantage in the hiring process.


Correctly used, life insurance is a highly flexible and useful tool in the business world.  It is the best way to provide liquidity and benefits when the inevitable happens.  It offers differentiated value for your organization and your employees.

If your situation doesn’t match-up with the scenarios described above, or if you have questions or just want to explore options, let us know.  We can help.