Ronald M Shultz, CPA Shares New Article on Life Insurance Tips for Small Business Owners

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Ronald M Shultz, CPA helps small business owners see five benefits in life insurance.

In a new Tax Tip from Ronald M Shultz, CPA, small business owners can find out five benefits to having life insurance. On a basic level, life insurance is what saves a family from dealing with financial troubles after a death. It can also be used to benefit small business owners in several ways.

As an employer, the small business owner can purchase life insurance for their employees, like any other benefit. According to Internal Revenue Code, employers are able to deduct premiums on term life insurance policies for their employees.

If a small business has partners or other active shareholders, the owners can benefit from a buy-sell agreement. The agreement ensures that the survivor may purchase the deceased owners share of the company in lieu of that share going to a new partner, or having to give up partial control to someone with no experience. The money for the agreement can come from life insurance policies. Each partner can own a policy on the other partner or the business can own the policy.

Life insurance can cover an integral member of the company’s team. If one person is so productive that their death would damage the company, a life insurance policy would offer protection from any lost revenue.

In some cases, life insurance policies, like whole life policies, can build cash value. That cash value is available to the employer to use, and that money could be used to create incentives to reward or keep key employees.

The cash value built by life insurance policies can also be used to supplement retirement income. The plans can be restricted to owners or executives, and the cash value that is built over time can help fund retirement.

Each small business is different and there are countless ways to use life insurance to benefit the company. For a more in-depth look at the benefits of life insurance, visit

About the company:
To meet the needs of their clients, Ronald M. Shultz, CPA, PA was established as a Florida CPA firm to provide accounting, tax, corporate tax, and business advisory services to corporations, small businesses and individuals throughout North Central Florida. They provide quality service for their clients by staying abreast of accounting and tax law changes, and by taking a proactive interest in the smooth financial management of their clients' business. At Ronald M. Shultz, CPA, PA, they make it their goal to understand the individual needs of every client including addressing industry specific challenges, compliance needs and standard tax practices.

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