key person income replacement presented by: kenneth a. bloch, clu
TRANSCRIPT
Key Person
Income Replacement
Presented by:Kenneth A. Bloch, CLU
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
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.”
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
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
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
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.
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
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
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
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
Key Person
Income protection can provide ultimate security for business/personal obligations & needs.
Presented by Kenneth A. Bloch, CLU, The Bloch Agency
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
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
