Business Insurance Fact-Finder

Transcription

1 Small- Business Life Insurance Kit Allianz Life Insurance Company of North America Business Insurance Fact-Finder (R-/203) Business concerns Most business owners express interest in one or more of the following concerns. Rate your level of interest for each: Extremely concerned Somewhat concerned Not concerned I want to guarantee my business will not suffer financially from the death or disability of a key employee. Life insurance can provide BIG BENEFITS TO SMALL BUSINESSES. I want to use my business checkbook and receive a current business tax deduction when I provide retirement and life insurance benefits for myself and/or key employees. I want to make contributions to a retirement plan for myself and/or key employees, above ERISA restrictions and contribution limits, but without administrative hassles. When I retire, I want to make sure that I/my family will receive the full market value for my business. If I died tonight, I want to prevent my executor from having to sell my business interest at auction block prices to raise money for estate settlement costs. I want to make formal, written arrangements for how my business interests are to be handled upon my death, disability, or critical illness. I want to put sufficient funding mechanisms in place to make these arrangements a reality. I want an employee benefit plan without cost to me that would help employees feel more secure and satisfied. This information is not intended to provide specific legal or tax advice. Neither Allianz Life Insurance Company of North America nor its affiliates or representatives and employees provide tax or legal advice. You should consult your tax advisor or attorney regarding your specific situation. M-52 Page of 6

2 Business profile Name of business Nature of business Number of years business has been in operation Business entity (select one): Sole proprietorship S corporation Nonprofit C corporation Partnership Other: Who owns the business? Owner # % of business Name Age Family relationship (if any) ONE-THIRD OF CONSUMERS believe they do not have enough life insurance. Owner #2 Owner #3 Owner #4 Management information Who runs the day-to-day operation? Title Age Duties 203 Insurance Barometer Study, LIMRA, 203. Page 2 of 6

3 Managing executive benefits Death benefit. What option is preferred for the executive death benefit plan (select one)? Pre-retirement death benefits only Pre-retirement and post-retirement death benefit How should the executive death benefit plan be funded (select one)? Employer contributions only Employer and employee contributions SMALL BUSINESSES MAY BE MORE LIKELY TO BLUR THE LINE BETWEEN BUSINESS AND PERSONAL FINANCE, which influences the approach to financial decision-making. Retirement benefits 2. What benefit structure is preferred for the nonqualified executive retirement plan (select one)? Retirement benefits based on current and future employee compensation Retirement benefits based on the future accumulation value of employee deferrals Retirement benefits similar to those being provided through the employer-sponsored qualified plan, but without the limits of that plan Select the employees you would like to participate in your nonqualified executive retirement plan (select all that apply): Non-owner key employees Majority owner-employees Minority owner-employees Do you have any qualified retirement plans? If so, what type? 40(k) SEP Defined benefit Other: Small World: Trends in the U.S. Small Business Market, LIMRA, 203. Page 3 of 6

4 Business continuation. What should happen to the business when the current owner(s) retire? 2. What should happen to the business when the current owner(s) die or become disabled? APPROXIMATELY 20% OF SMALL BUSINESSES PAY FOR LIFE INSURANCE COVERAGE THROUGH THE BUSINESS, for the benefit of either the company or the owner s family. 3. If your business were to be sold, how many employees would it take to replace the current owners? Number of employees needed 4. What is the average replacement salary that would be paid to replacement employees? $ Average replacement salary 5. Is there a business continuation plan in place? 6. Are there formal documents? 7. Who are the business advisors (attorney, accountants, etc.)? Business value What is the current value? $ Year business was last appraised How much would you ask for the business if you were selling it today? $ Small World: Trends in the U.S. Small Business Market, LIMRA, 203. Page 4 of 6

5 Key employees Enter the answers to the following questions in the tables below.. Enter the name of each owner and key employee whose loss, due to premature death, would significantly affect the profitability of your business. THE LOSS OF A VITAL EMPLOYEE CAN HAVE A MUCH MORE CATASTROPHIC IMPACT on the survival of a small company than a large one. 2. Enter the total balance of all loans that would require repayment upon the death of an owner or key employee you have listed. 3. Enter the potential annual loss of revenues the business would realize if it could not replace the owners or key employees you have listed. 4. Enter the projected costs (e.g., advertising, search firms, training, relocation) associated with securing qualified employees to replace those you have listed. 5. Enter the annual compensation required to attract a qualified replacement, including any special incentives that may be needed.. Name of key employee 2. Total loan balances 3. Annual revenue loss 4. Replacement costs 5. Replacement salary Additional information Is there anything else about this business that you feel is important for me to know? Is there anything about family or personal relationships that is important for me to know? Small World: Trends in the U.S. Small Business Market, LIMRA, 203. Page 5 of 6

6 True to our promises so you can be true to yours. A leading provider of annuities and life insurance, Allianz Life Insurance Company of North America (Allianz) bases each decision on a philosophy of being true: True to our strength as an important part of a leading global financial organization. True to our passion for making wise investment decisions. And true to the people we serve, each and every day. Through a line of innovative products and a network of trusted financial professionals, and with over 2.6 million contracts issued, Allianz helps people as they seek to achieve their financial and retirement goals. Founded in 896, Allianz is proud to play a vital role in the success of our global parent, Allianz SE, one of the world s largest financial services companies. While we pride ourselves on our financial strength, we re made of much more than our balance sheet. We believe in making a difference with our clients by being true to our commitments and keeping our promises. People rely on Allianz today and count on us for tomorrow when they need us most. Guarantees are backed solely by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America. Product and feature availability may vary by state. Products are issued by: Allianz Life Insurance Company of North America PO Box Minneapolis, MN Page 6 of 6