Business Owner Insurance Solutions

Free CFP Exam lesson in Risk Management and Insurance Planning. 15 min read, ~2,245 words.

Cross-purchase = stepped-up basis for survivors; entity redemption produces no basis change. Policy count: cross-purchase needs N x (N-1) policies; entity redemption needs N. Trusteed cross-purchase preserves the basis step-up with only N policies, the best fit for 4+ owners. Key person insurance: premiums not deductible, death benefit tax-free if...