Personal coverage is still the first policy
A Doral consultant with two kids and a mortgage is a family. The LLC does not eat first. Term on the owner, owned by the owner or a spouse, with a beneficiary who can keep the house — that is policy one. We can talk about the company on the same day. We will not skip the house to look sophisticated.
Income that is 1099 is still income. Underwriters will want tax returns. Two years of returns beat a story about a big year coming.
Key person when someone else would have to hire your replacement
Key-person life is owned by the company, beneficiary the company, purpose to fund the mess: recruiting, debt, a bad year. It fits when there is a person whose absence would actually stop revenue. A single-member LLC with no employees often does not need it. A five-person shop in a warehouse might.
Carriers want insurable interest and a story that is not a tax dodge. We write the story in one paragraph. If we cannot, we do not force the product.
Buy-sell: only with an agreement that exists
Two partners in a Miami trades business should have a buy-sell that says what happens on death, disability, and divorce. Life insurance is how you fund the buyout so the surviving partner is not co-owning with a grieving spouse. No agreement, no funding product. That order is not negotiable at this desk.
Cross-purchase vs. entity purchase changes who owns the policies and how many you need as partners are added. We coordinate with the business attorney. We are not the business attorney.
Banks, SBA, and personally guaranteed debt
If you signed personally on a note, your death still leaves the debt. Sometimes the bank wants to be a beneficiary or assignee. Sometimes the family just needs enough term to pay the note. We read the covenant instead of guessing.
SBA-related life requirements show up. Bring the commitment letter. We bind what the lender asked for, then we talk about what the family still lacks.
How to start this without a 40-page workbook
Ages, nicotine, face amount you are considering, whether there is a partner, and whether any bank has asked for a policy. Start a life quote. An advisor calls. Palmetto Bay or Doral, English, Spanish, or Portuguese.
If the business is still an idea, we insure the person. You can always add company-owned coverage when the company has payroll and a bookkeeper who is not your cousin’s weekend.
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