Life Insurance and Asset & Income Protection

A proactive approach to planning for a myriad of known and unknown events can protect your financial legacy and prepare you and your business for a seamless transition.

BKS works with entrepreneurs, businesses, families and individuals to design, procure and implement advanced life insurance to protect against the loss of income and assets.

We specialize in the design of advanced life insurance and long-term care strategies to ensure your liquidity needs are met.

Our team of experts will review existing lifestyle characteristics, estate structure and business operating agreements to identify potential exposures and ensure your evolving needs and financial future are properly protected.

By analyzing the performance of your current life insurance policies and reviewing options for optimizing the benefit and cost effectiveness of coverage, we ensure your current and future objectives are met. As part of the BKS life insurance review process, we provide a thorough explanation of how your policy has performed, projected cash values at designated intervals and an assessment of the number of years that the policy will remain in force based on guaranteed and current assumptions. We will also provide information on alternative policy solutions.

Family Continuity

We employ deep insurance knowledge and expertise to identify and translate the interconnections among your passions, your profession, and your enterprise. Just as a family regularly reviews their investment portfolio, a life insurance policy needs to be monitored to ensure it aligns with your family’s goals and performs according to their expectation. As part of our lifestyle diagnostic review, we:

  • Look at changes in the industry to ensure families have competitive policies that reflect the most favorable interest rates
  • Identify any recent improvements in health, underwriting, technology, and mortality that have been made since the policy was purchased to determine if premiums can be reduced or benefits can be increased
  • Assess your health to see if improvements may enhance policy pricing

Business Continuity

Our proactive approach positions your business for a seamless transition during an inherently difficult time. We explore your current continuity strategy to uncover potential gaps in coverage and help you build a business continuity plan that will maximize financial return and minimize tax liability. As part of this deep-dive into your business continuity plan, we:

  • Review your company’s buy/sell agreement to ensure the appropriate coverages are in place
  • Determine the value key employees provide to the company to ensure appropriate coverage matches that value
  • Market to over 20 reputable carriers to provide the best possible coverage at the best price
  • Determine how ownership will be transferred upon the untimely departure of a shareholder
  • Uncover areas that pose potential conflict among the heirs of the deceased and other business owners

Key person insurance

Most organizations employ at least one individual who is essential to the company’s success. This person may be a partner, majority stockholder or have expertise that is unmatched throughout the remainder of the company. If this person’s exit is planned, such as retirement or voluntary termination, you can prepare for the loss and take the necessary precautions to minimize the impact. However, if the departure is unplanned due to a death or a disabling accident, the company is exposed to financial risks.

If your organization employs individuals who are vital to its success, key-person life insurance will bring you the peace of mind of knowing your colleagues are protected. This insurance solution can protect your organization’s solvency and provide protection for investors and lenders.

Buy/Sell Insurance and operating agreement review

A buy-sell agreement is a preemptive approach to ensuring business continuity. This agreement is a contractual obligation between shareholders and their corporation, or between a shareholder and the other shareholders of the corporation. It pro-actively addresses a myriad of known and unknown events, and allows a family or business to position itself for a seamless transition during an inherently difficult time.

The buy-sell agreement determines what happens to the company stock in the instance of a triggering event, such as an ownership transition or the death, retirement or disability of a shareholder. A well drafted buy-sell agreement solves several estate planning problems for a business owner. It also serves as a comprehensive guide to protect and preserve the business.

Buy-sell arrangements can be structured under various forms, including:

Buy-sell arrangements can be structured under various forms, including:

  • Cross purchase
  • Entity purchase or stock redemption
  • Unilateral or one-way
  • Wait and see planDeferred compensation strategies

The plan structure will depend on the type of business, the number of shareholders and the stage of the company (e.g. growth or mature stage). The cost of both life and disability insurance will depend on the age and health of the shareholder and the duration of the policy.

It’s important to schedule annual reviews since the business’s evaluation can frequently change. Too often, these plans are created and then forgotten. A policy sold with an increasing death benefit allows some flexibility, but it’s almost impossible to have a policy with a face amount that directly correlates with the business valuation. Scheduling reviews and making adjustments, if necessary, is the only way to ensure adequate funding.

Long Term Care

The cost of long-term care can place a burden on you and your loved ones, especially in the absence of a sound long-term care strategy. The need for extended care can quickly drain away assets meant for retirement and other goals.

The average annual cost of nursing home care is now over $83,000 for a private room. For an average claim of three years, the cost may total over $200,000. A growing number of people are now including long-term care in their overall financial plan to mitigate the potential cost of getting the care they may need while preserving their hard-earned savings. Long-term care insurance provides peace of mind that you will receive the care you need where and when you need it, whether it’s at home, in an assisted care facility or at a skilled nursing facility.

How do you qualify?

A Licensed Health Care Practitioner must certify the insured is either:

  • Cognitively impaired (including Alzheimer’s and dementia)
  • Unable to perform two or more Activities of Daily Living (ADLs) for at least 90 days, including bathing, dressing, eating, etc.

Ensure your protection is as distinctive as you are.

Get in contact with an advisor today to see how BKS can support you.