Life Insurance for Business Owners

Protect Your Business. Protect Your Family. Optimize Your Wealth.

Owning a business means you carry unique responsibilities—not only to your family but also to your employees, partners, and customers. Life insurance isn’t just about personal protection; it’s also a powerful financial tool for business continuity, tax planning, and wealth building.

At Cross-Practice, we specialize in life insurance strategies tailored to the needs of entrepreneurs and business owners. From protecting your company against unexpected loss to maximizing retirement contributions, we help you safeguard both your business and your personal legacy.

Why Business Owners Need Specialized Life Insurance

Unlike traditional employees, business owners have access to advanced planning opportunities that can provide tax advantages, financial flexibility, and added protection.

Life insurance for business owners can:

  • Protect your company in the event of your death or disability

  • Fund buy-sell agreements to ensure smooth ownership transitions

  • Provide key person coverage to secure your company if a vital leader passes away

  • Enhance retirement planning through deferred compensation, split-dollar plans, and defined benefit structures

  • Create liquidity for estate planning to prevent forced business sales

Tax-Advantaged Strategies for Business Owners

Cross-Practice Insurance helps entrepreneurs design insurance-based plans that balance protection with wealth-building potential.

There are two primary categories of life insurance:

Deferred Compensation Plans

Reward and retain top talent with supplemental retirement benefits funded through life insurance. Flexible for employers, attractive for employees

Split-Dollar

Plans

Share the costs and benefits of life insurance between your business and yourself (or an employee). Provides coverage while minimizing out-of-pocket costs.

Defined Benefit Plans

Deduct up to $400,000 annually (including 401k and profit-sharing contributions) while using life insurance to enhance retirement benefits. A powerful strategy for high-income business owners.

Company-Paid Premiums

In many cases, life insurance premiums paid by the company can be structured to provide tax deductions and additional advantages.

Types of Business Life Insurance

Key Person

Insurance

Protects your company from the financial impact of losing a critical employee or executive. Helps cover recruiting costs, revenue loss, and business stability.

Buy-Sell Agreement Funding

Ensures a seamless transition if an owner or partner passes away. Life insurance provides the liquidity to buy out shares, keeping the business in trusted hands.

Executive Bonus

Plans

Allow employers to provide additional benefits to executives through company-paid life insurance, while also taking a tax deduction.

Balancing Business and Personal Needs

Business owners face a dual challenge: protecting their company while also securing their family’s financial future. Cross-Practice helps integrate both sides of your plan, ensuring that:

  • Your business remains stable if something happens to you

  • Your family receives the financial protection they need

  • Your retirement and estate plans are tax-efficient and aligned with your goals

Frequently Asked Questions (FAQs)

Can my business deduct life insurance premiums?

 In certain structures (such as split-dollar or defined benefit plans), yes. Our team will help you determine what’s allowable.

What is a buy-sell agreement and why fund it with insurance?

 A buy-sell agreement ensures a smooth transfer of ownership. Insurance provides the cash needed, avoiding debt or forced sales

How much key person coverage do I need?

 It depends on the revenue impact of losing a specific person. We help calculate the financial risk and match it with the right coverage.

Can life insurance help me save for retirement?

 Yes. Permanent policies can build tax-advantaged cash value, and when combined with defined benefit or deferred comp plans, they become a powerful retirement tool.

Why Choose Cross-Practice?

As a business owner, you need more than off-the-shelf solutions. You deserve a partner who understands the complexities of protecting both your company and your family.

Cross-Practice delivers that balance through:

  • Over 15 years of experience in life insurance and financial services

  • Licensed professionals with Series 65, 63, 7, and 24 credentials

  • Specialized knowledge of advanced business strategies and tax-advantaged planning

  • A client-first approach that prioritizes long-term relationships and trust

Take the First Step

Your business is one of your greatest achievements—and one of your family’s most valuable assets. Don’t leave its future to chance. With Cross-Practice, you can build a plan that protects what you’ve built and maximizes the opportunities unique to business owners.