retirement

Small business owners often have their largest asset tied up in a company that has no plan for death, disability or retirement. You don’t need years of training to help. This checklist covers the six core needs to review with every business owner client.

The six core needs checklist

Use these six areas as a checklist in your next business owner review:

1. Retirement income. Is the owner saving outside the business, or is the business the retirement plan?
2. Exit planning. Who will buy the business, at what price, and how will the purchase be funded?
3. Income protection. What happens to the owner’s income, and the business, if the owner becomes disabled?
4. Business protection. Is there key person coverage on the people who drive revenue?
5. Wealth transfer. How will the business and other assets pass to the next generation?
6. Survivor income. Will the family have income if the owner dies before the business is sold?

Start with the value of the business

Many owners have never had a formal estimate of what their business is worth. Without one, it is hard to size a buy-sell, key person coverage or an estate plan. A business valuation gives the owner perspective and usually starts the planning conversation on its own.

Review the buy-sell agreement

If a buy-sell agreement exists, check that it is funded, that the price or formula is current and that the ownership structure still makes sense. Many agreements were signed years ago and never updated as the business grew. Our article on cross-purchase buy-sell agreements covers common structures.

How SRS supports business cases

Our team works with you before, during and after the sale. We can help you:

• Decide which business owners to approach and how
• Build a simple marketing campaign
• Help clients estimate the value of their business and review buy-sell agreements
• Explain the findings and create an action plan

Contact us to talk through a business owner client.

Frequently asked questions

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

Connect on LinkedIn →

Many clients worry that Social Security and employer plans won’t fully fund the retirement they want. Qualified plans and IRAs help, but contribution and income limits cap what they can do. Properly structured permanent life insurance can add another source of retirement income while protecting the family along the way.

The retirement income gap

Clients increasingly understand they’ll need to fund more of retirement themselves. The usual tools all have limits:

• 401(k)s and similar plans are excellent but capped, and only available if an employer offers one.
• Traditional and Roth IRAs have contribution limits, and Roth eligibility phases out at higher incomes.
• Social Security and pensions may not cover the lifestyle clients expect.

Clients who have maxed these options, or can’t use them, need somewhere else to save.

How cash value life insurance helps

Properly structured permanent life insurance offers several benefits in one contract:

• During working years, the death benefit replaces income and pays off debt so the family can maintain its standard of living.
• Cash value grows tax-deferred inside the policy.
• In retirement, clients can access cash value through withdrawals and policy loans, which can be income-tax free when the policy is not a modified endowment contract and remains in force.

Design matters. Funding level, product type and loan strategy all affect results. Our article on using RMDs in life insurance sales shows another way retirement assets and life insurance work together.

Adding long-term care protection

Many permanent policies can include a long-term care or chronic illness rider that accelerates the death benefit to help pay for qualifying care. For clients worried that an extended care event could drain their retirement savings, this can be an efficient way to address two risks with one premium. See our overview of the LTC rider for how these riders typically work.

Which clients are a good fit

This strategy tends to suit clients who:

• Already contribute the maximum to qualified plans, or don’t have access to one
• Earn too much to contribute directly to a Roth IRA
• Have a genuine need for life insurance protection
• Can commit to funding the policy consistently for a number of years

Our Life Sales team can help you design and illustrate a policy for your client’s goals. Contact us to get started.

Frequently asked questions

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

Connect on LinkedIn →

Family-owned businesses face succession questions that go beyond a sale price. Owners have to decide who will lead, how to treat children who work in the business and those who don’t, and how the estate will handle a large, illiquid asset. Advisors who help families sort through these issues earn lasting relationships.

Why family businesses need a plan

Owners of family businesses typically spend their energy on running the company, not on what happens when they retire, become disabled or die. Without a plan, families can face disputes over control, a forced sale to pay estate taxes, or a business that loses momentum when the founder steps away.

Good candidates for a succession conversation often share these traits:

• Owner roughly 45 to 60 years old
• Plans to exit in the next 2 to 10 years, or transfer the business at death
• A history of stable, transferable earnings
• Revenue in the $2 million to $50 million range and 5 to 100 employees
• Substantial personal net worth tied up in the company

Balancing active and inactive heirs

A common situation: one child runs the business and another pursued a different career. Leaving both children equal shares can give the non-involved child a vote over decisions they don’t understand, and leave the active child working to build value for a sibling.

Many families solve this by leaving the business to the active child and using life insurance to provide a comparable inheritance to the others. Our article on life insurance for non-owner family members explores related planning.

Tools that support the transition

• Buy-sell agreements set the terms and price for a transfer at death, disability or retirement, funded with life and disability buy-out insurance. See our article on buy-sell transition planning.
• Key person insurance protects the business if the founder or a critical leader dies before successors are ready.
• Estate liquidity planning keeps heirs from having to sell the business to pay estate taxes, which remain at a 40% top rate above the federal exemption.
• Gifting and family entity strategies can shift ownership gradually during the owner’s lifetime.

How SRS can help

We support advisors with business succession cases at no cost, including:

• Access to succession planning specialists
• Client-facing materials that help start the conversation
• Review of a completed business succession fact finder, with a written summary of findings
• Joint calls with you and your client
• Analysis of applicable agreements, concepts and insurance solutions

Contact us to talk through a family business case.

Frequently asked questions

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

Connect on LinkedIn →

Qualified retirement plans and universal life insurance are very different products, but when used to fund retirement they share more than you might expect. For clients who lack a qualified plan, have already maxed one out, or want a non-qualified benefit, overfunded UL deserves a look.

Which clients should compare

A UL-for-retirement conversation fits clients who:

• Don’t have access to a qualified retirement plan
• Already contribute the maximum to the plan they have
• Want a non-qualified benefit for themselves or key employees

Side-by-side comparison

• Contribution limits: Qualified plans have annual caps. UL premiums are flexible, limited mainly by tax rules that keep the policy from becoming a modified endowment contract (MEC).
• Tax deduction: Qualified plan contributions are generally deductible. UL premiums are not.
• Tax-deferred growth: Both.
• Cost of insurance: Life coverage inside a qualified plan creates reportable economic benefit. In UL, insurance charges are paid internally from untaxed policy values.
• Required distributions: Qualified plans generally require distributions starting at 73. UL has no RMDs, so values can keep accumulating.
• Access: Qualified plan withdrawals are taxable, and early withdrawals are usually penalized. Non-MEC UL can be accessed through basis-first withdrawals and loans that can be income-tax free, typically after the surrender charge period.

What to watch

The advantages depend on design and discipline. Policies should be funded consistently, kept below MEC limits, and monitored so loans don’t cause a lapse. Clients also need to qualify medically, which is why insurability is an asset in its own right. Indexed UL is a common choice for this strategy; see our article on indexed UL for a related use.

Get an illustration

Contact us for an illustration of an overfunded UL design showing a withdrawal and loan strategy that can supplement your client’s retirement income from other sources.

Frequently asked questions

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

Connect on LinkedIn →

Many clients want help preparing for retirement, but few think of life insurance as part of that plan. Cash value life insurance, properly structured, offers tax-favored accumulation and tax-free income along with the death benefit. It deserves a place in the retirement conversation.

More than protection

Clients often see life insurance only as protection against dying too soon. They may not know that cash value policies offer tax-deferred growth and, if structured properly, income that is not taxable when taken through withdrawals up to basis and policy loans. For clients saving for retirement, that is a meaningful advantage.

Why term alone may leave value on the table

Term insurance is efficient for replacing income or covering debts during a set period. But most clients outlive their level term period, which means the premiums don’t come back to them. A cash value policy can serve as protection and a long-term savings vehicle at the same time.

Start early and fund consistently

Buying coverage at a younger age and in better health improves pricing. The longer a policy is funded, the more time cash value has to compound, and the larger the potential income stream. That cash value can help with retirement income, education costs for loved ones, or unexpected expenses like medical emergencies or home repairs. Flexible premiums help overcome the objection that the policy costs too much: clients can fund what they can reasonably afford. Policies must be monitored, since loans and withdrawals reduce the death benefit and can cause a lapse if mismanaged.

Make it part of every retirement conversation

Many clients want to talk about retirement but feel overwhelmed. If you haven’t shown them how cash value life insurance fits, another advisor may. Our team can help you compare accumulation products and build a design for any budget. For high earners, see how overfunded UL compares to a Roth IRA.

Frequently asked questions

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

Connect on LinkedIn →

Most clients think of life insurance as protection if they die too soon. But living too long, or living with an impairment, can be just as costly. A properly structured permanent policy with a long-term care rider can address all three risks in one plan.

Play one: the death benefit

The first job of life insurance is still the most important. The death benefit is immediate liquidity that can replace income, pay estate settlement costs, retire debts and fund a legacy. For clients with larger estates, it can also provide estate tax liquidity.

Play two: cash value for retirement

A permanent policy designed for accumulation builds cash value on a tax-deferred basis. In retirement, clients may access it through withdrawals and policy loans to supplement other income. Because loans and withdrawals reduce the death benefit and can cause a lapse if mismanaged, the policy should be illustrated and reviewed carefully.

Play three: long-term care benefits

Close to 70% of people turning 65 will need some long-term care. CareScout’s 2025 national medians put in-home care at about $35 an hour, assisted living at $6,200 a month, and a private nursing home room at $10,798 a month.

An LTC rider allows the insured to accelerate the death benefit to pay for qualifying care. Any benefit not used for care remains for beneficiaries. For design details, see our post on LTC riders on life insurance.

Who is a good fit

• Clients who want LTC protection but dislike the use-it-or-lose-it nature of traditional LTC insurance
• Pre-retirees who want both a legacy and a source of supplemental income
• Couples concerned about one spouse’s care draining assets meant for the survivor

Riders differ by carrier in benefit triggers, monthly limits and cost, so compare carefully. Contact us for a side-by-side design.

Frequently asked questions

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

Connect on LinkedIn →

Most clients understand why they need life insurance, but many worry that premiums will crowd out their retirement savings. A blended design that pairs term coverage with a cash value policy can address both concerns. Here’s how the strategy works and when to use it.

The client’s dilemma: protection or retirement?

Clients know Social Security, pensions and their own savings may not be enough to maintain their standard of living in retirement. They also know their families need protection if they die early. When the budget feels tight, one of those goals usually loses. A blended life insurance strategy is one way to avoid that trade-off.

How the blend works

• Term coverage handles the large, temporary needs: income replacement while children are young, the mortgage, education costs. It delivers the most death benefit per premium dollar.
• Cash value coverage, such as universal life or indexed universal life, covers the permanent need for the insured’s lifetime. When funded and structured properly, it can accumulate cash value that the client may access later through withdrawals and policy loans.

As the term coverage expires and the client’s temporary obligations fall away, the permanent policy remains in place.

Design points to get right

• Size the term piece to the length of the temporary needs, not just a round number of years.
• Fund the permanent policy with a realistic, sustainable premium the client can keep paying.
• Check whether the term policy is convertible so the client has a path to more permanent coverage without new underwriting.
• Explain that policy loans and withdrawals reduce the death benefit and, if the policy lapses or is a modified endowment contract, can create taxable income.

For more on when permanent coverage makes sense, see permanent vs. term life insurance.

Which clients are a good fit

The blend works well for younger families with large short-term needs and a desire to start building long-term assets, for business owners who want both protection and supplemental retirement income, and for clients who have maximized qualified plan contributions and want another tax-advantaged option. Our case design team can run side-by-side illustrations so you can show clients exactly how the pieces fit together.

Frequently asked questions

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

Connect on LinkedIn →

Clients who think about disability usually focus on paying the bills. Fewer think about what it does to retirement, including how Social Security treats years spent disabled and why savings rarely recover.

What happens to Social Security

If a client qualifies for Social Security Disability Insurance (SSDI), their benefit is based on their earnings record, and a disability freeze keeps the disabled years from lowering the calculation. At full retirement age, SSDI converts to a retirement benefit, generally at the same amount. But SSDI uses a strict definition of disability, has a five-month waiting period, and many initial claims are denied, so clients shouldn’t count on it.

What happens to savings

Contributions stop, employer matches stop, and many people withdraw from retirement accounts to cover expenses, often with taxes and penalties. Years of lost compounding can push retirement back substantially.

Protecting both income and retirement

Individual disability insurance protects the paycheck. Disability retirement coverage pays up to a set percentage of income into a trust each month during disability, subject to carrier maximums, so saving continues. See protecting retirement contributions.

Sales approaches

• Pair individual DI and retirement protection in the same conversation.
• Approach clients at maximum individual DI issue limits.
• Approach clients who max out their 401(k).
• Offer retirement protection to business owners as an executive benefit.

Frequently asked questions

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

Connect on LinkedIn →