GSI – Life Insurance

Guaranteed Standard Issue is an option for the employer looking to choose the right life insurance for his employees or partners.

Guaranteed Standard Issue is a simplified issue life insurance, wehre the applicant only needs to satisfy the condition of being actively at work. It is a non-voluntary, employer-paid program with guaranteed level premiums for 10 years.

Key Benefits:

• No physical exam needed
• Coverage can be issued up to age 70
• Individual policy –Portable and convertible to permanent life insurance.
• Based upon the number of covered lives and the plan design, each individual can qualify for up to $1.5 million or more of coverage

This product is flexible based on your needs and organizational structure. For example, a firm can design a plan to provide buy-sell funding for three partners while at the same time providing key person coverage on ten managers and a fringe benefit for the remaining eligible employees.

It is also an individual policy – versatile enough to satisfy a number of life insurance needs, such as fringe benefit for employees, Buy-Sell funding and Key Person coverage.
 

Fringe Benefit

Advantages over Group Term Life Insurance:

• - Price remains constant for 10 years
• - Benefits can increase to match increasing salaries
• - No age-based benefit reductions
• - Portable at some cost upon termination
• - Convertible to permanent insurance without proof of insurability

Buy-Sell Funding*

A Buy-Sell agreement is a legally binding document that stipulates what will happen to a business when a business owner or partner becomes disabled, dies, retires, or decides to sell his or her interest in the company.

For Buy-Sell funding with life insurance, the business entity may be both the owner and beneficiary of the policy. Upon the death of the owner, the company uses the life insurance proceeds to purchase the interest of the deceased owner, as stipulated by the Buy-Sell Agreement.

Key Person Life Insurance*

The untimely death of a key person - such as an owner, partner, or executive - often has a significant impact on a business. Replacing the expertise and knowledge of an essential individual can take time and money - and may even jeopardize the continuity of the business. Key person life insurance can help the transition.

The business entity is the owner and the beneficiary of each policy and will receive the entire death benefit.

*Under Internal Revenue Code section 101(j), for the death benefit of a life insurance policy to be excluded from the business' income, the employee must be given notice of the policy and consent to be insured by the employer. This notice and consent is in addition to any notice provided on the life insurance application and must be signed by the employee prior to issuance of the policy. Also, see IRS Form 8925 Report of Employer-Owned Life Insurance Contracts.

---

You'll get the most useful, specific information if we discuss your situation first -
a discussion with no sales pitches.
Contact us for a no-obligation free quote.