Key Person Income Replacement Presented by: Kenneth A. Bloch, CLU

Do you know what would happen to your business if a key employee, critical to the livelihood of your business, became totally disabled? Presented by Kenneth A. Bloch, CLU, The Bloch Agency Key Person Income Replacement

Key Person income replacement provides a cash benefit to the business should a key employee or 50% or less owner become totally disabled. Presented by Kenneth A. Bloch, CLU, The Bloch Agency This cash infusion can “ save the business. ”

Target Market Key Person protection is ideal for businesses that have specialties or experience not easily replaced. Examples of such employees are: o Architects o Attorneys o CPAs o Computer Specialists o Engineers o Sales Presented by Kenneth A. Bloch, CLU, The Bloch Agency

Employer Owner Insurance Carrier Here is how it works: Employer pays the premium and owns the policy insuring the key employee against total disability. 2.If key employee becomes Totally Disabled, the employer receives benefits. Generally benefits are tax-free and can be used at the discretion of the business. Presented by Kenneth A. Bloch, CLU, The Bloch Agency

How the policy pays? Business owner will receive cash monthly payments. Example (Sales Executive - $200,000 Income): 90 Day Waiting Period Monthly benefit: $20,000 (Day 91 to Day 180) Then $500,000 Lump Sum Payment Presented by Kenneth A. Bloch, CLU, The Bloch Agency

Non-Traditional Key Person Expands the definition of a key person and provides an infusion of cash to “save the dream or family” Presented by Kenneth A. Bloch, CLU, The Bloch Agency If you have a dream, you have to protect it.

Example #1 Sole Business Owner Computer Business Consultant Manages small business computer/ telephone systems and servers. He is the key person – knowledge is not transferable – up to a 3X earnings lump sum benefit after 1 year of total disability. This benefit would be payable in addition to any personal income protection. Presented by Kenneth A. Bloch, CLU, The Bloch Agency

Example #2 Sole Business Owner Financial Planner Clients will find new advisor quickly, leaving his thriving business financially vulnerable. He is the key person – knowledge is not transferable – up to a 3X earnings lump sum benefit after 1 year of total disability. This benefit would be payable in addition to any personal income protection. Presented by Kenneth A. Bloch, CLU, The Bloch Agency

Example #3 Ex-Spouse Receives Alimony & Child Support Payor of Alimony & Child Support is the Key Person. Should he/she become disabled, Alimony, child support, and education expenses are protected. Benefits are payable directly to ex-spouse after a 90 day EP, retroactive back to the 30th day to complete the obligation. This benefit would be payable in addition to any personal income protection the “key person” may have. Presented by Kenneth A. Bloch, CLU, The Bloch Agency

Example #4 Family with Special Needs Child Working parent/or financially responsible guardian is the Key Person The expenses and care of a special needs child should be protected. If disabled, a lump sum payment up to 500k is deposited in an educational trust for the sole benefit of the special needs child. This benefit would be payable in addition to any personal income protection the “key person” may have. Presented by Kenneth A. Bloch, CLU, The Bloch Agency

Key Person Income protection can provide ultimate security for business/personal obligations & needs. Presented by Kenneth A. Bloch, CLU, The Bloch Agency

Kenneth A. Bloch, CLU The Bloch Agency 5950 Fairview Rd, Ste. 225 Charlotte, NC Phone: Presented by Kenneth A. Bloch, CLU, The Bloch Agency

DI Day May 5 th, 2015 Join us for an opportunity to speak with Income Protection Specialists For more information: Presented by Kenneth A. Bloch, CLU, The Bloch Agency