What it is:

• An employer owned life policy providing tax free cash in the event of the death of a key employee
• Provides indemnity for:
  • Losses in sales, momentum and credit
  • Project interruptions
  • Costs to hire and train a replacement

How it works:

Advantages:

• Helps assure customers and creditors of continuity
• Provides an addition to surplus to help replace profits with little or no tax cost
• May fund a stock redemption agreement or deferred compensation plan
• Provides funds to recruit, hire and train a replacement employee
• Provides for many employer purposes at a cost of pennies for each dollar of death benefit