Achieving Long-Term Small Business Success Through Life Insurance and Employee Loyalty
Life insurance funds succession planning, deferred compensation plans and buyout capital for key employees. Succession planning is crucial for long-term small business success. Life insurance plays a major role in this process. If a business partner dies, becomes disabled, or leaves, it can create serious financial challenges. Owning life insurance on business partners helps avoid expensive loans and provides funds for a buyout to settle their estate. Permanent life insurance is a valuable asset because it grows tax-deferred, builds cash value, and offers a death benefit. This way, you can focus on running your business even during tough times.
Key Employees Deserve Retention & Reward Plans
A key employees departure will cause disruptions to your operations, lost revenue and client dissatisfaction. Key employees need to be rewarded with retention packages. Permanent life insurance offers a death benefit and cash value that serves as a deferred compensation benefit. The firm controls the terms of the retention package, and they can be used for the employee to purchase equity in the firm. Therefore funding a buyout for your retirement, also creating smooth succession planning.
A robust employee benefit package fosters loyal and productive employees. Disability, life and sick day benefits can be difficult for many individuals to afford as a stand alone policy. As a group benefit the total cost is less, allowing you to purchase benefits for your employees who otherwise would be uninsured. Since the benefits are tethered to their job, the value of the benefit can be perceived as greater than the actual cost.
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Key Employee Retention
Losing a key employee will cause a disruption in your firm's operations, dissatisfied clients and negatively affect your bottom line. Triathlon Partners has proactive solutions that keep valuable employees happy and a cash cushion to help your firm withstand departures.
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Our YouTube channel where Ira Koyner, “The Original IRA,” shares clear, actionable insights to help you make smarter financial decisions. From retirement planning and structured notes to tax reduction and wealth protection, each episode delivers practical strategies in plain English — all designed to help you align your money with your goals.
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Selling your business can be ordeal, even when a clear buyer has been identified far in advance. Whether its a family business or sold to a key employee, financing the sale can occur years in advance. Proper planning results in greater tax efficiencies and keeping the valuations high.
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