Term Life & IUL (Indexed Universal Life) strategies for business owners
Explore protection for your business loans, the people who depend on you, and the legacy you’re building.
Explore Term Life and IUL options for your business.
Personalized Options • No Obligation • Takes About 2 Minutes
Protect Business Obligations
Help provide funds to address outstanding business loans and financial commitments.
Protect Your Family
Help reduce the financial burden your passing could place on those you love.
Protect Your Legacy
Help provide financial resources to support business continuity and succession planning.
Built for business owners
Term Life & IUL strategies
Licensed insurance professionals
No-obligation review
Why protection matters
As a business owner, your responsibilities don’t end when you leave the office.
You may have outstanding loans, employees who depend on your leadership, financial obligations, and a family relying on the income your business generates.
An unexpected death can create serious financial and operational challenges. Life insurance can help provide funds to address some of those challenges.
Business loans, commercial mortgages, and equipment financing may remain outstanding after an owner’s death. Depending on the financing arrangements, the business, estate, or personal guarantors may face repayment obligations. Appropriately structured life insurance may help provide funds to address those obligations.
If your family depends on income generated by your business, losing that income can create immediate financial pressure. Life insurance proceeds payable to your designated beneficiaries can help provide financial support.
Your absence could affect revenue, operations, customer relationships, and employees. Key-person insurance may provide funds to help a business manage the financial impact of losing an essential owner or employee.
If you share ownership, your passing could create ownership and succession challenges. A properly structured buy-sell agreement funded with life insurance may help surviving owners purchase a deceased owner’s interest.
Financial exposure
Educational example
This is a simplified illustration, not a personalized coverage recommendation. Actual insurance needs depend on existing assets, liabilities, available coverage, business structure, and beneficiary arrangements.
Coverage options
Different businesses have different financial responsibilities. Explore life insurance solutions that may help address your needs.
Term Life Insurance
Term life insurance provides coverage for a selected period, such as 10, 20, or 30 years. It may be appropriate for business owners seeking protection during years when business loans, family responsibilities, or other financial obligations are highest.
Indexed Universal Life (IUL)
IUL is a form of permanent life insurance that combines a death benefit with the potential to accumulate cash value. Cash-value interest credits are linked to an external market index under the policy’s crediting rules.
Important: IUL policies involve fees, insurance charges, caps, participation rates, and non-guaranteed crediting. Policy loans and withdrawals can reduce death benefits and cash values, cause a policy to lapse, and potentially create tax consequences. Returns are not guaranteed.
Key Person Life Insurance
If your business relies heavily on an owner, founder, or key employee, losing that person can create financial disruption. Key-person insurance may help provide funds to support business continuity, recruiting, debt obligations, and other financial needs.
Buy-Sell Agreement Funding
For businesses with multiple owners, life insurance can help fund properly structured buy-sell agreements. This may provide financial resources to facilitate ownership transitions after a partner’s death.
Compare strategies
| Term Life | Indexed Universal Life | |
|---|---|---|
| Coverage duration | A set period, such as 10, 20, or 30 years | Designed to last a lifetime when adequately funded |
| Initial premium considerations | Generally lower initial premiums | Generally higher premiums for comparable death benefit |
| Cash-value potential | None | Potential cash value linked to index crediting; not guaranteed |
| Premium flexibility | Fixed premiums for the term in most policies | Flexible within policy requirements |
| Policy complexity | Straightforward | More complex: caps, participation rates, fees, and charges |
| Business debt protection | Well suited to matching coverage to a loan’s term | Can be used, though often costlier for short-term needs |
| Long-term planning | Coverage ends when the term expires | Can support succession and legacy planning |
| Common considerations | Coverage may become costly to renew later | Requires ongoing funding; loans and withdrawals carry risk |
Term Life is often suitable when owners need a defined amount of coverage for a specific financial obligation or time period.
IUL may be appropriate when owners have long-term protection needs and can support the policy’s ongoing funding requirements and risks.
Neither product is automatically the best solution for every business owner.
Protection calculator
Enter rough figures to see an illustrative estimate. Your inputs carry into your assessment so a professional can review them with you.
Illustrative financial protection gap
$0
This is an educational estimate, not a quote or professional financial recommendation. Business-owned and personally owned policies may have different beneficiaries and cannot necessarily be treated as interchangeable funds.
How it works
Complete a short assessment about your business, financial responsibilities, and protection goals.
A licensed insurance professional can help identify potential Term Life, IUL, or other business protection strategies appropriate for your situation.
Review available options, complete any required underwriting, and select coverage that fits your needs and budget.
Coverage is not in force until an insurer approves an application and issues a policy.
Industries we help protect
Every business is different. These are common concerns, not assumptions about your situation.
Trucking companies may carry vehicle and equipment financing.
Construction companies may rely heavily on an owner’s expertise and relationships.
Restaurants may have leases, equipment financing, and payroll responsibilities.
Retailers may carry inventory financing and lines of credit.
Real estate businesses may hold commercial mortgages tied to the owner.
Service firms may depend significantly on their founder’s income-producing ability.
Practices may carry equipment loans and depend on a principal provider.
Manufacturers may have significant machinery and facility financing.
Franchisees may have franchise loans and personally guaranteed leases.
Self-employed owners may be the business’s only source of income.
FAQs
You’ve invested your time, energy, resources, and ambition into building your business. A thoughtful protection strategy can help provide financial security for the people and responsibilities that matter most. Explore your options before an unexpected event creates financial uncertainty.
Explore Term Life, IUL, and Business Protection Options.