Royale Investment Advisor LLC

Description

Life insurance is a crucial part of most personal estate plans, but it also could be very important for your business. "Key-person" insurance can help ensure continuity and solvency if someone who plays a top role in your company should die unexpectedly. The proceeds could cover the cost of hiring and training a replacement and pay off outstanding bills or loans called in by anxious creditors. Key-person policies usually cover the owner and the president of the business--often the same person--and can be especially helpful if surviving family members plan to continue running the business.

We develop your financial plan by integrating your current resources, commitment, and time horizon to develop an overall long-term investment strategy. A risk management program to deal with the uncertainties of life that may derail your long term plans will be included.

3. Contribution toward earnings. Estimate what portion of your company's earnings can be attributed to the key person and then multiply that amount by the number of years needed for protection. For instance, if you attribute roughly $100,000 of annual earnings to a key employee, you would need $500,000 of coverage to protect that employee for a five-year period. What happens if the key person leaves your company while the policy is in effect? Your business might sell the policy to the departing worker, or surrender it for its cash value, assuming that it is permanent insurance.

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