Life Insurance Awareness Month

As a business owner, the importance of life insurance is something to keep in mind. Life Insurance Awareness Month is held during the month of September, and this is a great time to see how life insurance can meet both personal and business planning needs.

Personal Life Insurance Uses Can Include:

• Providing survivor income. Proceeds can help meet your family’s ongoing income needs after the death of a breadwinner. 
• Paying estate taxes and final expenses. If your assets exceed the exclusion amount, a 40% federal estate tax will be due within nine months of the date of death. Additionally, several states have a state level estate tax that may apply. Expenses, such as final medical bills, funeral costs, and legal fees will also be due shortly after death.
• Providing estate equalization. If you want to pass specific assets to certain heirs and still treat other heirs fairly, life insurance proceeds can help to provide inheritances of similar value to everyone.

Business Life Insurance Uses Can Include:

• Funding buy-sell agreements. Even the best plans can be derailed if the money to implement a buy-sell agreement is not there when needed. 
• Retaining employees with a special benefit. Life insurance can play a role in employee retention by serving as the basis for a specialized benefit plan for select employees. 

Life insurance has many benefits for both you and your business. Contact your local Federated^® marketing representative to discuss how this type of coverage can benefit your specific situation.
 

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• Life Insurance Awareness Month JPG
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This article is for general information and risk prevention only and should not be considered another other offer of insurance or legal, financial, tax, or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all losses. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. This information is current as of its publication date and is subject to change. Some of the services referenced herein are provided by third parties wholly independent of Federated. Federated provides access to these services with the understanding that neither Federated nor its employees provide legal or other expert advice. All products and services not available in all states. Qualified counsel should be sought with questions specific to your circumstances. All rights reserved.