Protection Glossary – At-a-Glance

Disability Insurance (Long Term): This insurance is designed to help replace a portion of your income if you are unable to work due to an accident or health crisis for a period of many years or to the age of 65, depending on the circumstances and how the insurance coverage is structured.

Disability Insurance (Supplemental): This disability insurance is designed to supplement coverage you already have in place and varies based on your specific needs and circumstances.

Executive Benefits: Leveraging insurance as a benefit to your leadership team rewarding longevity through a cash value policy awarded at retirement is one example and can enhance leadership succession.

Estate Equalization: When there is a family-owned business and multiple children, some a part of the business and some not, this will create structure around all the children inheriting equal assets. This can also be a part of a business succession plan.

Estate Planning: Also known as wealth planning, this considers your assets and holdings and how to leverage for your future based on your goals and retirement needs.

Key Person Insurance: This type of insurance is purchased by the business and is payable to the business when a key person in the organization dies or becomes disabled. If your business is dependent on specific people within the company in addition to the owners for the business’ sustainability in operations or sales, this insurance is a good investment.

Long-Term Care: This type of insurance will provide coverage for at-home or facility care should you become disabled or chronically ill beyond the care that a family member can manage on a day-to-day basis. This insurance can also be purchased for a loved one such as an elderly parent. With the national average of life expectancy continuing to increase, this insurance has brought peace of mind to many families who have planned strategically.

Legacy Planning (Families): Planning for the next generation of your family can consider everything from what is being left to children and distribution of assets to charitable giving.

Legacy Planning (Business): This is succession planning for your business taking into consideration key leadership, buy-sell agreements, and any other considerations.

Life Insurance (Employee Benefit): See Section 162 Bonus Plan.

Life Insurance (Legacy Planning): This is a life insurance policy that is incorporated into legacy planning for individuals and families or businesses.

Life Insurance Retirement Plans: Many life insurance policies have cash value that grows tax deferred, allowing it to be used as income in retirement.

Section 162 Bonus Plans: Also known as Executive Bonus Plan, Section 162 Plans area way for business owners or companies to provide additional supplemental benefits to key employees or executives selectively. The company provides the key executive a bonus that is taxable as income to the recipient. The bonus is used to purchase a whole life or universal life insurance policy that builds cash value while growing tax deferred.

Term Life Insurance: Life insurance for a certain amount of time that ends at a designated time determined at the start of the policy. It does not have any cash value.

Wealth Transfer: Estate planning and legacy planning for estate taxes and gift taxes to mitigate obligation.

Life Insurance: Insurance that pays out a sum of money either on the death of the insured person or after a set period of time.