Business Concepts

The success of a business is largely dependent on strategy, planning and - of course - hard work. But there are a few areas that can sometimes get overlooked. For business owners, these areas usually concern protecting and rewarding key employees or successfully transferring a business to surviving family members or partners. In addition to death benefit protection, life insurance can help ensure that all the effort and money invested in a business doesn’t disappear when things don’t go as planned.

Two women discussing business.

Buy Sell

Whether your clients own a large company or a small family-operated business, the success of any business includes good strategy and planning. Buy-sell plans actually have two parts – the legal plan (written by an attorney) and the funding. One popular funding source is to use a life insurance policy to fund the buyout.

Commonly used with

Strategic Accumulator® IUL 3

Premier Term

Strategic Protector® IUL 2

Strategic Accelerator® IUL 3

A women in business with her laptop in hand.

Executive Bonus

An executive bonus arrangement can be a simple way to provide a valuable benefit for company owners and key employees. It can help reduce turnover of key employees that could result in significant financial losses.

Commonly used with

Strategic Accumulator® IUL 3

A businesswoman using her tablet

Key Person

Most companies have a person(s) whose skills are vital to the success of the business. A key person may be an owner, partner, or employee without whom the business could suffer serious consequences. The employer can purchase a life insurance policy on the employee and is the owner, premium payor, and beneficiary of the policy.

Commonly used with

Premier Term

Strategic Accumulator® IUL 3

Strategic Protector® IUL 2

Strategic Accelerator® IUL 3

Businesswomen having a casual meeting

Endorsement Split Dollar

Split dollar agreements are an arrangement between two or more parties, usually an employer and employee, to purchase and share the costs and benefits of a life insurance policy. Learn more about the benefit of using an endorsement split dollar agreement and what it has to offer.

Commonly used with

Strategic Accumulator® IUL 3

A businessman on his laptop

Loan Regime Split Dollar

Executive Advantage, Midland National's loan regime split dollar sales concept can be an effective approach to help business owners recruit, retain and reward select employees. Learn more about what it has to offer.

Commonly used with

Strategic Accumulator® IUL 3

A man using his laptop

Executive Retention+

This flexible, employer-controlled life insurance sales concept can help your business owners protect their business, retain key talent, and support succession.

Commonly used with

Strategic Accumulator® IUL 3

Under an endorsement split dollar arrangement, the employee enters into an agreement with their employer. Midland National is not a party to this agreement and Midland National's only obligation is to administer the policy it issues consistent with the policy's terms and conditions.

Under an endorsement split dollar arrangement, the value of the life insurance afforded the employee is taxable to the employee. The employer should provide the employee with tax reporting based on requirements specified in the tax code. The parties to the endorsement split dollar arrangement should seek their own independent legal and tax advice as to whether and how to enter into an endorsement split dollar arrangement based on the employer's and employee's unique circumstances.

Under a split dollar agreement, classified as a welfare benefit plan, the employee must belong to a select group of management, which includes quantitative and qualitative elements. To meet the quantitative standard, plans should be limited to the top 15% of the workforce. To meet the qualitative test, a significant disparity should exist between the average compensation of the top-hat group and the average compensation of all other employees.

To ensure the death benefit proceeds of any employer-owned policy retains its tax-favored treatment, it is essential to comply with the notice and consent requirements of IRC Section 101(j). Under a loan split dollar agreement, the employee enters into an agreement with the employer. Midland National® Life Insurance Company is not a party to this agreement and Midland National's only obligation is to administer the policy it issues consistent with the policy's terms and conditions.

Indexed Universal Life Insurance products are not an investment in the “market” or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance."

While the primary use of life insurance is death benefit protection, your clients may also have other needs that can be met through life insurance. The sales concepts and accompanying marketing materials below may help you broaden your sales potential. As independent contractors, it is up to you to choose which of these concepts may work for your particular sales strategy and clients, and which do not. Please note that Midland National does not require you to use any of these sales concepts; they are resources that can be used at your discretion for your own individualized sales presentations.

Neither Midland National nor its agents give legal or tax advice. Please advise your customers to consult with and rely on a qualified legal or tax advisor before entering into or paying additional premiums with respect to such arrangements.

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FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.

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