Successful businesses have one thing in common: they often have one – or more – key people who are essential to operating the business.
Loss of these key people can have a devastating impact on the future of the company. Key person life insurance helps mitigate this risk and can provide liquidity when the business needs it most: upon death of a key person. And when Ohio National’s Prestige Indexed 10 Pay life insurance is used and withdrawals are properly structured, the business can access accumulated cash values in the policy to help with business needs or as a non-taxable capital source to take advantage of expansion opportunities.
Policy example: Insured is a male, age 45, super preferred health. The below illustration shows a $500,000 death benefit with a 5.6% interest crediting rate. It also shows ten years of policy cash withdrawals of $50,000 starting at age 65 as a fringe benefit “golden handcuff” program for the employee.