Lump Sum DI or CI Policies

[VolAgent]

Thanks, but I have this case taken care of now.

Im aware of the buy/sell DI products and key man DI products, but they are for business situations only, not available for individual markets.

Using this as part of a succession plan is a bit more complicated than we want to deal with. Plus if im not mistaken, those types of policies have to have the business or a sucesser as the beni, it cant be the insured. And this is to protect his income, not the business.

I found a CI policy from AG; it gives him a choice of a lifetime benefit, 30y,20y,& 10y. He is in underwriting now.

I also found a DI policy from Peterson Int. They will cover him until 80 as long as he is still employed with the same company. And the definition of disability is a lot looser than most DI policies.

Thanks for all the suggestions.

No problem. No idea why it showed up as recent as it was so old, didn't look at the date.

But you are right about the arrangement. They tend to want the person who is going to take over the firm to be the bene, that way they can buy out the owner. That said, what is he going to do with the business at retirement, leave it to his children? If so, it is still not a bad idea. If he does become disabled, his children get the company at an increased cost basis.

 

[scagnt83]

No problem. No idea why it showed up as recent as it was so old, didn't look at the date.

But you are right about the arrangement. They tend to want the person who is going to take over the firm to be the bene, that way they can buy out the owner. That said, what is he going to do with the business at retirement, leave it to his children? If so, it is still not a bad idea. If he does become disabled, his children get the company at an increased cost basis.

Yeah, the highlighting of threads have been kind of screwed up lately...

Dont get me started on this jokers business transition... lol

There is so much he needs to get in order its rediculous! And he is one of these "well lets wait until this is finalized before we talk about anything else.." kind of guys... and not the brightest when it comes to financial matters.

Personally he needs to consolidate his multiple ULs that are starting to fall apart.

With the business he needs a full fledged succession plan.
The 401K is mis-structured as well, and he is getting money back at the end of the year.. so it needs to be re-structured.

They also need key man policies for multiple people...

He has a partner whom I just met the other week. Hopefully I will get the two together in a month or two and lay out all of the problems along with their solutions. Im getting a feeling like this 50% partner does about 20% of the decision making for the financial aspects of the business... lol