SECTION III.
“Funding Your Buy-Sell Agreements and Key Man
Coverages”
Presented by Cohen Partners LLC:
Mark Isack, CFP®, ChFC
Who will
your new
partner
be???
The Buy-Sell Concept is Simple
Entity Buy-Sell Agreement
Cross-Purchase Buy-Sell Agreement
Wait & See Buy-Sell Agreement
Disability Buy-Sell Agreement
Business Owner & Executive Solutions
Business Protection
Stay Bonus Plans
Key Person
Business Overhead Expense
Key Person Insurance
Why should I
purchase Key
Person
Coverage?
How Do Key Person Plans
Work?
1
Employer pays premium on, and is the
owner and beneficiary.
Employer
Life Ins. Carrier
Upon the death of the key employee, the
employer receives the death proceeds generally
income tax free.
2
Exit Planning
Non- Family
Sell to
Co-Owner
•Cross Purchase
Sell to Employee
or Third Party
•Employee Stock
Ownership Plan
•Entity Purchase
Family
Sell to Co-Owner
•Cross Purchase
•Wait & See
•Select Buy-Out Plan
•Wait & See
•One-Way Buy-Sell
•Multi-Owner Buy-Out
•One-Way Buy-Sell
•Multi-Owner Buy-Out
•Installment Sale
•Installment Sale
•Employee Stock
Ownership Plan
•Entity Purchase
•Select Buy-Out Plan
•Business Continuation
General Partnership/ LLC
Sell to Employee
or Third Party
•Transfer to Owner
then Buy-Sell as CoOwner
•Gift Business
•Business Continuation
General Partnership/ LLC
•Installment Sale
•Grantor Retained
Annuity Trust
•Installment Sale,
Interest Only
Installment Sale, or
Self Cancelling Note
•No-Sell Buy-Sell
•Grantor Retained
Annuity Trust
Business Owner Key Findings
Ranked Priority and Percent Offered
Ranked Priority
Percent Offered
1
Business Protection
30
2
Group Health Benefits
51
3
Income Protection
24
4
Qualified Retirement Plans
39
5
Group, Life, Disability, Dental &
Vision
46
6
Supplemental Retirement Income
14
7
Voluntary Employee Benefits
13
8
Wealth Transfer
66
9
Survivor Income
70
10
Exit Planning
27
Conclusions:
 Protect the future of your Start-up Business
with Buy-Sell Agreements and Key-Person
Insurance
 What are your priorities as a Start-up
Business
 Discuss with your insurance professional
what Business Protection you need for your
company’s current stage of development.
Disclaimer
This presentation represents our understanding of the Federal income, gift
and estate tax law as currently interpreted. Summit Financial Resources, Inc.,
its affiliates, agents and representatives, do not offer tax or legal advice. We
recommend that you seek specific advice regarding legal and tax matters
from qualified advisors.
The illustrations used in this presentation are purely hypothetical and are
used solely to demonstrate the general concepts presented herein.
Mark Isack is a Representative of, and offers securities through, Summit Equities, Inc., Member FINRA/SIPC,and,
an Investment Advisory Representative offering Financial Planning Services through Summit Financial Resources, Inc.
Supervisory Office, 4 Campus Drive, Parsippany NJ 07054 (973) 285 3670
Thank you!