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... The insurance proceeds place the firm in a better position to finance replacement of the key person. 2) Accumulates an emergency cash fund (if a permanent Life policy is used) . The firm can borrow emergency funds needed (without publicity) from the policy's cash values. 3) Strengthens the firm's credit. Creditors are assured that debts will be paid despite the loss of the key person. Pension Maximization: Americans due to receive a pension when they retire will have a big decision to make in choosing how to get their benefits. Option 1 is to take the full amount of the pension (usually about 50% of earnings while employed) . When the retiree dies, the pension payments stop. Option 2 is known as joint-and-survivorship. When the retiree dies, pension benefits continue to ... paid to the retiree's spouse. However, this option will cost about 30% of the Option 1 benefit. Pension maximization is a simple concept that proposes that the retiree have a Life insurance policy that ensures payment to the spouse in case of the retiree's death. With this policy, the first option for pension payment can be chosen without fear of leaving the spouse without an income. And, in many cases, the Life insurance policy costs less than 30% of the pension that would have to be paid if pension benefits were to be continued after death. With Life insurance, the policyholder is in total control of outcome rather than at the mercy of an expensive double-dip' in income for which he or she didn't allow. Salary Continuation Plan: A Disability policy paid for by the ...

...spite the loss of the key person. Pension Maximization: Americans due to receive a pension when they retire will have a big dec...Does the firm have Group Disability, pension plans, or payroll deduction plans...

...e Cancellation, Term conversions, pension maximization, and so on.) Action Steps 6 and 7 ...