Support your business with life insurance

Life insurance can help you address some common challenges business owners face, such as recruiting and retaining top talent, protecting from the loss of a key employee, and helping with business transitions. Adopting these strategies can help your business succeed now and into the next generation.

Recruit and retain top talent  

Article highlights

  • Recruit and retain talent
  • Provide cover for key employees
  • Help with business transitions

In the current job market, it’s difficult to attract and retain the talent that your business requires for success. In fact, 47% of hiring business owners found there were few or no applicants for the positions they were looking to fill.1 Fringe benefits that incorporate life insurance may offer enticing incentives for these top performers, while also providing your business with possible tax deductions.


In an Executive bonus plan (PDF) (I.R.C 162 bonus), your business provides its key personnel with bonus payments to fund premiums for employee-owned life insurance policies. These bonuses are taxable as income to the employees, but tax deductible* for the company. Your employee designates a beneficiary for the policy and has access to the cash value to supplement retirement income.

Learn more about strategies (PDF) to help you reward, recruit and retain the employees you need.

Providing coverage for a key employee

Does your business rely on one or more key persons, such as a co-owner, partner, top executive or any individual, whose skills, experience and knowledge drive the growth of the business? The sudden loss of one due to death could be financially devastating to the organization. Key person life insurance can help you avoid a loss in revenue, as well as business disruption, while you recruit and train a suitable replacement.
Learn more about how you can add an extra level of protection to your business. (PDF)

Helping with business transitions

Planning for the succession of your business may be one of the most important and critical challenges you face. A buy-sell agreement (PDF)  helps establish the value of the business and identify the purchaser of the business interest. Funding a buy-sell agreement with life insurance can provide immediate access to cash, which can help ensure continuity for customers, and potentially provide a valuable income stream to loved ones.
Learn more about ensuring the orderly transfer of your business. (PDF)

Take advantage of life insurance to address the unique needs of your business. Discover how comprehensive solutions (PDF) can help protect your business investment and maintain your competitive edge. Talk with your advisor to learn more about how Lincoln’s business solutions can help you and your business succeed.

*The deductibility of the bonus is subject to the reasonable compensation limits established by Internal Revenue Code Section 162(a).

1Dunkelberg, William C., and Holly Wade. “NFIB Small Business Economic Trends.” National Federation of Independent Business, NFIB Research Foundation, Jan. 2017,