Most small businesses have three similar issues that can rob the owner of a good night’s sleep:

1. Planning for ownership transition and the continuation of the business

Planning for continuation of ownership in the event of retirement, disability or death is perhaps the fundamental need of any closely held business, especially one that has more than one owner.

Solution: When life insurance is incorporated into buy-sell planning, it can provide the funds needed to liquidate ownership shares and allow a co-owner or partner to buy out the other partner.

2. Protecting the operating team of the business

Every successful business has at least one key employee or contributor who is indispensable. What if that person died unexpectedly or had a severe disability?

Solution: Life insurance can be used to protect against the financial costs associated with the loss of a key employee. The key-employee life insurance policy provides liquidity to sustain cash flow, keep accounts current and cover the expense of seeking and training a replacement.

3. Recruiting, retaining and rewarding key employees

It is tough to attract talented employees. The best people have many choices for employment and can command their desired compensation package.

Solution: Life insurance can be used to recruit and retain key employees by:

Rewarding key personnel with a tax-advantaged retirement income in the form of a life insurance policy, where the business owner pays the premium in the form of a bonus to the employee.
Attracting and retain talented executives and key employees using life insurance as part of a benefit program that will supplement the regular retirement benefits of a key executive.
There’s no better time to start planning for your small business! Talk with a financial planner to help regain control of your sleepless nights.


Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance.


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Posted 6:00 PM

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