Common Mistakes With Business Owned Life Insurance

Life insurance can be one of the most important purchasing decisions that can be made by a business owner.

Life insurance is not a one-size-fits-all solution and the key to becoming a well-educated insurance professional is to know some of the traps and mistakes that can be common in the business setting.

Top 10 Business Owned Life Insurance Mistakes

1. Failure to Follow Employer Owned Life (EOLI) Rules IRC 101(j)
2. Naming a personal beneficiary on a corporate owned policy
3. Not Properly accounting for Business Life Insurance on Balance & Income Statement
4. Naming the Estate as the Beneficiary
5. Improper Ownership of the Buy/Sell
6. Misalignment of Ownership & Beneficiary in the Buy/Sell
7. Not matching the insurance product with the problem
8. Not understanding Transfer-for-Value rules
9. Problems with loans creating “phantom” income
10. Inadequate amount and failing to review regularly

Business Owned Life Insurance can be Complicated!

Let Underwriting Specialists, with nearly 50 years of experience, make sure proper planning is executed for your business clients.