Companies and their owners can be especially vulnerable if a key person dies or becomes disabled. Oftentimes, this person's leadership, entrepreneurial skills, network of contacts and expertise drives the company's success and these elements are not easily replaced. Companies face continued overhead expenses, and reduced income when disability or death intervene.

Thorough planning can minimize the financial impact of disability or death on the survivors and the company. Providing adequate financial protection for key executives with life insurance, disability and disability buyout insurance is an important consideration in business planning.

Life Insurance for executives, business owners and officers can be structured to benefit the company and surviving family members.

Life insurance may also fund a buy-sell agreement after the death of a business owner. The buy-sell agreement outlines a successor plan for company ownership. The life insurance provides the money for the plan to work.

Disability Insurance

The disability of company owners, partners or officers can bring havoc to a business and to the disabled person. Disability insurance is structured to pay a percentage of the person's salary in the event of a disability. For very highly compensated individuals, special planning may be required to provide an adequate level of benefits.

Disability Overhead Expense Insurance

For professional and many small businesses, there is a specially designed disability policy that provides payment to the company, for their fixed overhead expenses that continue in the event of a disability. This policy can provide payments for office rent, employee salaries, and many other fixed expenses that will continue.

Disability Buyout Insurance

When a disability is permanent and it is unlikely that an owner or partner will return to work, disability buyout insurance funds a buy-sell agreement that's already in place. The disabled employee receives a previously agreed-upon sum for his or her ownership in the company. The business continues with a new owner or partner and the disabled owner receives a fair payment for their share of the business.