Listen to Steve Alloy in Advanced Markets as he discusses this topic:
Small business owners are smart to form their companies as LLCs, corporations and limited partnerships. Why? Those entities tend to do a pretty good job of protecting the business owners’ personal assets from the businesses’ creditors.
So, on the one hand they have done fine. They probably have been successful. They probably got a nice return on the money that they reinvested in their business. They have not lost everything to a creditor. And their business didn’t collapse because of an economic downturn or a disruption of their industry.
None of those bad things happened. At least not yet.
On the other hand, any of these things COULD happen at any time. It makes sense for a business owner to build some wealth outside of the business and away from any business creditors. 80-90 percent of the owner’s total assets are quite often still locked up in their business and available to any creditors of that business. Wasn’t protecting their assets the reason they set up the LLC or corporation in the first place?
One great way to build that wealth is with the Income Advantage IUL, owned by the business owner, not the business.
While there are many vehicles for building wealth, life insurance has some unique aspects that make a difference here. Specifically, the family is protected against the premature death of the person who probably brings in the largest income in the family. Add to that the living benefits like tax-advantaged withdrawals and loans in retirement and the availability of living benefit riders like the LTC or Chronic Illness Rider, and you really have a tool that can protect what clients have, while building for what they want.
Income Advantage IUL can be a good way for business owners to build those personal assets. If you have a question about a concept, how our products work for a specific sales concept or if you just want to run an idea by us, give us a call at at 1-800-693-6083 or email us at email@example.com.
Building Wealth Outside the Business