Advanced planning

Virtus IUL II for the key person market

“You don’t build a business. You build people, and then people build the business.”
– Zig Ziglar, author and motivational speaker

A need for protection

Businesses often insure their important assets: The buildings they own, the equipment they use. But sometimes they miss the most important asset of all – their people. In every successful business there are key employees. They can be key drivers of sales, they can be product designers, they can be strategic thinkers, and the loss of their skills would have a painful monetary impact to the business.

Have your business owner clients identified and insured their key people? It takes time and energy to replace a key person. Business owners may need a solution to get through that replacement process while keeping their business running at the same time.

A key solution

A key person life insurance policy is owned by the business, with the business as the beneficiary. Usually, the business will use a term policy to provide this infusion of cash when it is most needed. Term has the advantage of being inexpensive and guaranteed. However, some businesses might prefer to use a permanent policy to cover this need. Permanent life insurance can provide an infusion of cash at other times when the business needs it – not just when a key person dies. Many businesses have intensive capital production requirements such as fronting a large amount of money for inventory, or bonding, or some other routine, but financially stressful, need. 

Virtus IUL II for key person

Virtus Indexed Universal Life (IUL) II may be the right fit for businesses. In today’s low interest rate environment, a traditional universal life policy or whole life policy may not provide the potential for enough cash value growth to attract a business owner. At the same time, a pure equity investment through a variable universal life insurance policy can pose too great a risk to the accumulated funds in a policy. The ability to tie interest rate crediting to an outside index, such as the S&P 500^® Index, provides for higher potential growth while protecting the business by limiting downside risk with a 0% floor. Virtus IUL II may offer other attractive options for your business owner clients including:

• Access to different types of loans (Index and Standard) and the flexibility to switch between them
• All interest crediting enhanced by 30 basis points starting policy year 11. (Guaranteed for index account, current or fixed account)
• Affordable cost of insurance and competitive expense levels.

Your client’s employees make their businesses great. Protecting against their loss is an important step in protecting the business. When you can ad in the flexibility, protection and cash value growth potential of a Virtus IUL II policy, you can show your clients the power of permanent life insurance as a solution to their challenges.