How do I…

Protect and grow my business?

You want your business to maintain its competitive edge. Attracting talent and building a succession plan for the future means you can ensure your business stays in stable hands.

Is your business future-proof?

Business plan, marketing plan, financial plan. Your business has a lot of plans, but what about a protection plan? From retaining talent to funding improvements to ensuring smooth business succession, you want to know your business can continue to thrive. Here are some considerations to making sure it stays protected.

How may I transition the ownership of the business?

Without proper planning, the sudden death or disability of a small business owner may have a devastating impact on the business, the business’ employees, and the other business owners. It may also have a significant financial impact on the business owner’s family. A properly structured business continuation plan (i.e. a buy-sell agreement) funded with life insurance may help to minimize the impact for both the business and the business owner’s family. Talk to your financial professional to learn more.

What is a business continuation plan for a business with many owners?

Because a business with multiple owners may need flexibility, there are a variety of ways to structure a buy-sell arrangement, including Entity Purchase Buy-Sell, Cross-Purchase Buy-Sell, Wait-and-See Buy-Sell, and a One-Way Buy-Sell. Talk to your financial professional to help you discover what strategy may be right for you based on your business planning needs.

How do I help protect my business against the loss of a key employee?

The success of a business may hinge on the ideas and leadership provided by a key executive. The sudden death of that key executive may have a severe economic impact on the business due to the loss of that executive’s unique skills and abilities. Additionally, the business may have to spend substantial amounts of cash to recruit and train the replacement executive. A prudent strategy to protect the business during the transition period is key person life insurance. Talk to your financial professional for details.

How can my business stand out in today's competitive climate?

Whether you are looking to provide your employees a comprehensive 401(k) or a plan that incentivizes key employees only, you may fund a variety of customized solutions with our mutual funds, annuities, and life insurance. We offer professional, consultative support and quality financial products to help you complete your employee benefits package. Talk your financial professional and qualified and independent tax and legal advisors for details.

How can I help provide a comfortable retirement for my employees?

Inadequate retirement savings is not only a concern for the owners and employees of a business but also for their families. For those close to retirement, the problem can be two-fold: how to provide for their families and how to save for retirement in a limited timeframe if the employee dies prior to retirement. A split-funded defined benefit plan funded with life insurance and other assets/investments chosen by the client's financial professional may be able to provide both meaningful death benefit protection and supplemental retirement benefits. Talk to your financial professional to help you discover if this or another strategy using life insurance or another financial product may be right for you based on your business planning needs.

What if I want my business to end up being employee-owned?

One way to plan is with an Employee Stock Ownership Plan (ESOP). An ESOP is a special type of qualified profit-sharing plan that invests primarily in employer securities. If an S- or C-Corporation owner doesn’t have an heir, co-owner, or outside buyer interested in taking over the business, or wants the business to end up being employee-owned, an ESOP may be an effective vehicle for creating a source of funds to purchase the owners’ interest in the company. Not only does the ESOP create a buyer for the business owner’s stock but a C-Corporation business owner (but not an S-Corporation owner) can use the sale proceeds to purchase “qualified replacement property” and defer taxation on the sale of the stock to the ESOP. This allows a C-Corporation owner to sell part or all of the business to the ESOP without immediate taxation and use the proceeds to diversify assets through the purchase of qualified securities. Consult with your independent legal and tax advisors for additional details.

How can I protect my business from estate taxes?

Typically, there are two ways to plan. One is the use of life insurance within an irrevocable life insurance trust (ILIT) and the other is the use of business assets to pay life insurance premiums and hold the life insurance as a business-owned asset used in a buy-sell arrangement (entity redemption). The determination is generally based on your estate tax liability and other tax considerations. Consult with your independent legal and tax advisors for additional details.

Products to Protect Your Business

Cash Value Life Insurance

Offers death benefit protection with tax deferred cash value build up, and tax-free access to the cash value via policy loans and withdrawals.

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Retirement income

Being happily retired looks different for everybody. Maybe you want steady retirement income that lasts or supplemental income to help you meet the unexpected in life.

LEARN MORE

Plan now, so you’re ready later

For you, family is one of the most important things in your life. You take care of them. They take care of you. Making sure that they’ll always be taken care of, no matter what happens.

LEARN MORE

Save Enough for My Future

You don’t know what the future has planned for you, but you want to be prepared for the unexpected and be able to achieve your goals.

LEARN MORE

For tax-free death benefit proceeds: For federal income tax purposes, life insurance death benefits generally pay income tax-free to beneficiaries pursuant to IRC Sec. 101(a)(1). In certain situations, however, life insurance death benefits may be partially or wholly taxable. Situations include, but are not limited to: the transfer of a life insurance policy for valuable consideration unless the transfer qualifies for an exception under IRC Sec. 101(a)(2)(i.e. the transfer-for-value rule); arrangements that lack an insurable interest based on state law; and an employer-owned policy unless the policy qualifies for an exception under IRC Sec. 101(j).

For tax-free distribution: For federal income tax purposes, tax-free income assumes, among other things: (1) withdrawals do not exceed tax basis (generally, premiums paid less prior withdrawals); (2) policy remains in force until death (any outstanding policy debt at time of lapse or surrender that exceeds the tax basis will be subject to tax); (3) withdrawals taken during the first 15 policy years do not cause, occur at the time of, or during the two years prior to, any reduction in benefits; and (4) the policy does not become a modified endowment contract. See IRC §§ 72, 7702(f)(7)(B), 7702A. Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits.

All investing involves risk, including the possible loss of the principal amount invested. The value of the variable investment options will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please see the prospectus for a detailed description of investment risks.

Pacific Life's Home Office is located in Newport Beach, CA.

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