key person income replacement presented by: kenneth a. bloch, clu
TRANSCRIPT
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Key Person
Income Replacement
Presented by:Kenneth A. Bloch, CLU
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Do you know what would
happen to your business
if a key employee,
critical to the livelihood
of your business,
became totally disabled?Presented by Kenneth A. Bloch, CLU, The Bloch Agency
Key Person Income Replacement
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Key Person income replacement provides a cash benefit to the business should a key employee or 50% or less owner become totally disabled.
Presented by Kenneth A. Bloch, CLU, The Bloch Agency
This cash infusion can “save the business.”
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Target MarketKey Person protection is ideal for businesses that have specialties or experience not easily replaced.
• Examples of such employees are: o Architects o Attorneyso CPAso Computer Specialistso Engineerso Sales Presented by Kenneth A. Bloch, CLU, The Bloch
Agency
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Employer
Owner
Insurance Carrier
Here is how it works:
1.
2.
1. Employer pays the premium and owns the policy insuring the key employee against total disability.
2. If key employee becomes Totally Disabled, the employer receives benefits. Generally benefits are tax-free and can be used at the discretion of the business.
Presented by Kenneth A. Bloch, CLU, The Bloch Agency
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How the policy pays?
Business owner will receive cash monthly payments.
Example (Sales Executive - $200,000 Income):
• 90 Day Waiting Period
• Monthly benefit: $20,000 (Day 91 to Day 180)
• Then $500,000 Lump Sum Payment
Presented by Kenneth A. Bloch, CLU, The Bloch Agency
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Non-Traditional Key Person
Expands the definition of a key person and provides an infusion of cash to “save the dream or family”
Presented by Kenneth A. Bloch, CLU, The Bloch Agency
If you have a dream, you have to protect it.
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Example #1Sole Business Owner
Computer Business Consultant • Manages small business computer/ telephone
systems and servers. • He is the key person – knowledge is not
transferable – up to a 3X earnings lump sum benefit after 1 year of total disability.
• This benefit would be payable in addition to any personal income protection.
Presented by Kenneth A. Bloch, CLU, The Bloch Agency
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Example #2Sole Business Owner
Financial Planner • Clients will find new advisor quickly, leaving
his thriving business financially vulnerable. • He is the key person – knowledge is not
transferable – up to a 3X earnings lump sum benefit after 1 year of total disability.
• This benefit would be payable in addition to any personal income protection.
Presented by Kenneth A. Bloch, CLU, The Bloch Agency
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Example #3Ex-Spouse Receives Alimony & Child Support
Payor of Alimony & Child Support is the Key Person. • Should he/she become disabled, Alimony, child
support, and education expenses are protected. Benefits are payable directly to ex-spouse after a 90 day EP, retroactive back to the 30th day to complete the obligation.
• This benefit would be payable in addition to any personal income protection the “key person” may have. Presented by Kenneth A. Bloch, CLU, The Bloch
Agency
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Example #4Family with Special Needs Child
Working parent/or financially responsible guardian is the Key Person
• The expenses and care of a special needs child should be protected.
• If disabled, a lump sum payment up to 500k is deposited in an educational trust for the sole benefit of the special needs child.
• This benefit would be payable in addition to any personal income protection the “key person” may have.
Presented by Kenneth A. Bloch, CLU, The Bloch Agency
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Key Person
Income protection can provide ultimate security for business/personal obligations & needs.
Presented by Kenneth A. Bloch, CLU, The Bloch Agency
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Kenneth A. Bloch, CLU
The Bloch Agency
5950 Fairview Rd, Ste. 225
Charlotte, NC 28210
Phone: 704-643-0999
Email: [email protected]
Presented by Kenneth A. Bloch, CLU, The Bloch Agency
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DI DayMay 5th, 2015
Join us for an opportunity to speak with Income Protection
Specialists
For more information: www.plusgroupnc.comPresented by Kenneth A. Bloch, CLU, The Bloch
Agency
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