business

For the business owner insurance takes on a new meaning. Understanding the goals of the business owner is critical in determining which program is the most beneficial for the company. The Knights of Columbus offers, for it's members, several policies specifically designed for the business market.

A Buy/Sell Agreement is, simply, an agreement for the purchase and sale of a business ownership interest if an owner dies. There are two basic types of Buy/Sell Agreements- (1) An Entity Plan and (2) A Cross Purchase Plan.

FEATURES AND BENEFITS

*With the implementation of Buy/Sell Agreement, the business creates a guaranteed market for the sale of a business interest due to an unexpected death of a principal.

*The Buy/Sell Agreement, at the time of implementation, determines the value of a business for purposes of Federal estate and death taxes.

*The Buy/Sell Agreement enables the remaining business principals to continue the business without interference from the terminating owner's family or outsiders.

*This avoids inequities and future disagreements regarding the value and the disposition of the business interest.

*Funding Buy/Sell Agreements with insurance provides a decisive advantage versus borrowing funds when considering the Business Transfer Costs.

Split Dollar is a method of paying for an insurance policy whereby the premiums are "split" between the corporation and the business owner/employee. The business owner buys an insurance policy, then enters into a collateral assignment in which the corporation agrees to pay the premiums. There are two basic types of Split Dollar Life Insurance- Equity Split Dollar Life Insurance and Reverse Split Dollar Life Insurance.

The Executive Bonus plan is designed for Brother Knights who wish to have a business sponsored retirement plan whereby the premiums are paid for by the company as a tax deductible business expense.

Knights of Columbus

Business Insurance