Business Life Insurance Planning

What is Business Life Insurance Planning?

Business Life insurance planning provides a financial safety net that allows a business to grow or stay in business in the event of the death of an owner or key employee. This removes some of the worry from the business owners so they can focus on day-to-day issues of the business.

Is Business Life Insurance different than Personal Life Insurance?

The actual policies used for business planning needs are the same as personal planning needs. Term life insurance, whole life insurance or universal life insurance can all be used for business planning needs. A primary difference in business life insurance is how the policies are structured in relationship to the ownership  and beneficiary of the policies. Typically business policies are set up to insure the owner(s) of the business or a key employee, therefore a legal written agreement is usually drawn up by an attorney to spell out the ownership and how the policy proceeds are to be distributed.

Is Business Life Insurance underwritten the same as Personal coverage?

Generally speaking life insurance for business owners or key employees is underwritten primarily the same as personal insurance coverage. They will generally require a medical exam and labs along with medical questionnaire to see if they are in special risks to consider when evaluating their request for coverage.

One difference is usually an underwriter will want to see more financial justification for the insurance protection. They may want a complete financial breakdown or worksheet for the business. This can include business assets, liabilities, market value, when business was started and current net profit. Typically, they will also want to know the current amount of protection already in force on any business owners or key employees.

Should I use Term Life or Permanent Life for Business Planning?

The plan of protection typically depends on the need and what you want your policy to provide. Many times a business owner will simply want to replace their income with life insurance. In order to maximize protection and have the lowest possible premium term life insurance would offer the best choice. A term policy would also work well for covering a business debt or personal loan.

If you need to have money available for possible estate taxes or to equalize an inheritance if all children are not involved in the business then a more permanent plan of protection like whole life or universal life would make sense. To fund a buy-sell agreement or provide capital if a key employee dies you could use either a term or permanent policy or a combination of the two.

How does a Permanent policy help in Business Planning?

Permanent life insurance policies more commonly known as whole life, universal life and equity-indexed universal life can offer some exciting options to business owners. A permanent policy allows a business owner to be creative in not only providing death benefit protection in case of an early death, but also in providing supplemental retirement benefits to the owner or key employee.

Cash values can grow on a tax-deferred basis inside of a permanent plan of protection. And if set up properly these values can be accessed on a tax-free basis at retirement. The cash value inside a permanent policy can be carried as an asset on the books of the company and provide an emergency fund or help pay the premium in a down year.

Unlike term life insurance that can expire at the end of the term, a permanent policy will typically continue forever as long as premiums are paid or enough cash value exists to carry the policy. This helps create a self-completing plan when death does occur.

Why is Business Life Insurance Planning so Important?

Everyone should prepare for the possibility of an untimely death. But, as a business owner you need to consider the financial impact of your death not only on your family, but also on your business and by extension the people who depend on your business for their livelihood. That’s why life insurance is an absolute necessity for business owners. Ask yourself the following questions:

  • How would your company operations be affected by the loss of a founder or key employee/
  • Would your business be able to continue in your absence?
  • Would surviving partners and your family members be able to work in harmony?
  • Would the business need to be sold and if so, how much would a sale realistically be able to command?

If you have a need for business life insurance planning and would like a quote or simply want to discuss your situation give us a call at 1-888-393-9003 or email 


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Mike Raines

I am an independent life insurance agent with over 30 years’ experience. I am an expert in finding coverage for those with past or current medical history such as heart disease, diabetes, post cancer, etc. I also specialize in those that participate in scuba diving, mountain climbing, private pilots, etc. I work with the best life insurance companies in the nation, such as Prudential, AIG, Protective Life, Transamerica to name a few. Each carrier has different opinions on rates and underwriting, and it is my job to match you with the best company. To do that, I need to ask you a few questions about your health and lifestyle to qualify you.

For a FREE quote, call, text or email:

Call: 678-207-8160

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Mailing Address:
3482 Keith Bridge Road Suite #125
Cumming, GA 30041


Mike and Special Risk Term are absolutely top shelf! I was worried that I would not be able to get term life insurance to protect my family, or that the costs would be exceedingly high.

Mike knew the industry inside and out and knew which companies would provide the best options. He coordinated with the underwriters to get the job done and get me an affordable plan, and kept me updated throughout the entire process. Not to mention he did it all electronically in the age of COVID without ever having to meet in person. Highly recommend. Excellent service and expertise!

- Chris M. from Laguna Niguel, CA.

Two Thumbs Up for Mike at Special Risk Term

- Yaniv from Troy, MO.

Mike did an outstanding job getting me my coverage. He went above and beyond answering all my questions. He always returned my calls immediately even on the weekends!!! I highly recommend him.

- Aileen from Woodstock, GA.

Mike did an awesome job in finding affordable coverage for myself and my husband. Highly recommend his services.

- Shannon from Atlanta, GA.

I could not be happier working with Mike Raines to get life insurance coverage for myself after having been declined for health reasons by my employer. My wife and I just had a son and it had become more imperative than ever that my family be protected if I were to pass away. The health screening appointment was conducted at my home around my schedule, which was very convenient. It was clear to me that Mike went above and beyond to make sure the underwriter fully understood my situation, going to bat for me so that I would not be declined again. I am a very happy customer.

- Daniel S. from Seaside, CA.

It’s not easy to find life insurance with a chronic condition such as crohn’s disease which is why I greatly appreciated having Mike on my team. Mike is responsive, patient, professional and indefatigable- all things you need when you’re looking for a competitive policy. Knowing my family will be taken care is not only a relief but a huge confidence boost and I’m thankful Mike works in the special risk insurance arena. I would absolutely work with him again. Thank you Mike!

- Bobby from Washington D.C.

Mike and his team made the entire process from start to finish very seamless and also overcame the task with us being multiple states apart with ease. With the easy process and very competitive priced insurance for high risk athletes, you have no need to look anywhere else for coverage. Thanks to Mike and his team for all they did and I highly recommend them for your Special Risk Life Insurance needs.

- Tyler C. from Danville, VT.

I tried several places before I came across Mike’s website. The insurance at these other places was either very expensive, or the company wouldn’t cover me because of my health history. Mike was able to find me a reasonably priced policy with a major insurer. He did a great job locating a policy that works well for me.

- Jeff from Hermon, ME.

As someone with a past cancer diagnosis, finding life insurance had been a huge annoyance. Mike made it easy, and somehow found quotes that were significantly more affordable than what others gave me.

- Matthew from St. Louis, MO.

Best rates and best service I have ever received.

- Robert from Kennesaw, GA.

We work with individuals across the nation to secure the best life insurance rates.

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