1. Key Person Insurance

• Description: Covers a key employee whose loss would significantly affect the business.

• Benefits: Helps cover revenue loss, recruitment costs, or business loans.

• Best For: Small to mid-sized businesses with irreplaceable leaders or salespeople.

2. Buy-Sell Agreement Insurance

• Description: Funded with life insurance to buy out a deceased partner’s share.

• Benefits: Ensures smooth ownership transitions.

• Best For: Partnerships or multi-owner corporations.

3. Executive Bonus Plans (Section 162)

• Description: Employer pays premiums on a life insurance policy owned by an executive.

• Benefits: Employee benefits from policy; employer may deduct premiums as compensation.

• Best For: Attracting and retaining top talent.

4. Group Life Insurance

• Description: Typically term life offered by employers to employees.

• Benefits: Guaranteed issue (no medical exam), low cost.

• Best For: Business benefit packages.

5. Split-Dollar Life Insurance

• Description: Agreement between employer and employee to share the cost and benefits of a policy.

• Benefits: Flexible funding and tax-efficient benefits.

• Best For: High-income executives, advanced business planning.