Life Insurance Strategies for Small Business Owners

[Justin Bilyj]

I am reviewing a list of solutions for businesses that have retirement, succession, and key employee concerns. Which would you say in your own opinion pertain more to the business size of 1-4 employees? Would you change any if it was for 5-10?

Life Insurance Retirement Strategy (LIRS)
Executive Bonus
Controlled Executive Bonus
Qualified Plans with Life Insurance
Supplemental Executive Retirement Plan (SERP)
Voluntary Deferral Plan
Split-Funded Defined Benefit Plan
Permanent section 79 plan
Business Financed Life Insurance
Accounts Receivable Financing
Own-way buy sell

Also have you ever combined uses for a plan, like a key man policy that doubles as a golden handcuff type of plan?

I have been seeing these plans pop up alot and trying to figure out what the pros use out there for the small business owner.
Thanks!

 

[VolAgent]

JMO. I've always been much more successful by getting the prospect to talk about his fears and concerns then telling him what should scare him. This applies to business owners, employees, kitchen table, etc.

Everyone has something that scares them, you just have to get them to talk about it, and then translate it into a problem you can fix so you can show the solution.

 

[Mattschmidt]

JMO. I've always been much more successful by getting the prospect to talk about his fears and concerns then telling him what should scare him. This applies to business owners, employees, kitchen table, etc.

Everyone has something that scares them, you just have to get them to talk about it, and then translate it into a problem you can fix so you can show the solution.

Well said. If you shut up and listen to the people, they will explain their needs. Everyone has a hot button

 

[Jerard]

Everyone has something that scares them.

So true, with me it's aliens (and my Ex). But how do you start the conversation to get a client to talk about their fears?

 

[VolAgent]

So true, with me it's aliens (and my Ex). But how do you start the conversation to get a client to talk about their fears?

That's the secret.

 

[Full Throttle]

I just ask who needs money if something happens to them. In 95% of the cases in the under 10 employee range, the owner personally owns the policy and is the insured. Term and/or permanent depending on what they want. A buy-sell here and there. Nothing fancy.

 

[Justin Bilyj]

Not looking to see how to start the conversation, asking which of these is NOT suited towards small business owners.

 

[Jerard]

That's the secret.

Ohhhhh waaaahhhhhh.....I wannnna knowwwwww......

I'll give ya Santa's private number....

 

[VolAgent]

Not looking to see how to start the conversation, asking which of these is NOT suited towards small business owners.

All of them or none of them.

You are approaching this from the wrong perspective, probably from having too many drinks with wholesalers. Find the problem and then the solution. Starting with the solution is a recipe for frustration.

Focus on having conversations with business owners and getting them to share what worries them. Is it if they don't come home, is it if they are disabled, retaining key employees, how to fund retirement, what happens when they retire, what? Of course a lot will want to talk about keeping the doors open. Either because staying open is a challenge or you aren't able to get them to talk about other fears.
- - - - - - - - - - - - - - - - - -

Ohhhhh waaaahhhhhh.....I wannnna knowwwwww......

I'll give ya Santa's private number....

I got Santa on speed dial. And let me tell you, he gets darn cranky this time of year.

 

[Jerard]

I got Santa on speed dial. And let me tell you, he gets darn cranky this time of year.

Yea...so did my ex.

Oh, wait.....

It all makes sense now...