Question 1

What's the difference between term, whole, and universal life — and which fits a business owner?

Accepted Answer

Term covers a specific period (10, 20, 30 years) with a fixed premium and a fixed death benefit, no cash value — the lowest-cost option for straight income protection or buy-sell funding with a clear time horizon. Whole life builds guaranteed cash value alongside the death benefit, locks in premiums for life, and serves longer-term wealth and estate planning needs. Universal life sits between the two — flexible premium, cash value tied to credited interest or indexed market performance, and adaptable for changing income or estate situations. Most business-owner programs use a combination: term for short-horizon needs (loan collateral, key person during a growth phase), permanent for buy-sell funding, estate liquidity, and wealth transfer.

Question 2

How does life insurance fund a buy-sell agreement?

Accepted Answer

A buy-sell agreement is a contract among partners that says when one partner exits — through death, disability, or another triggering event — the surviving partners or the company itself purchases that partner's interest at a pre-agreed valuation. Life insurance funds the death-triggered side of that obligation. Without funding, the surviving partners are left to negotiate price and find liquidity at the worst possible moment. The policy structure (cross-purchase, entity purchase, or hybrid) is chosen based on the number of partners, ownership structure, and tax considerations — and structured properly the proceeds are received income-tax-free.

Question 3

How much coverage does a business owner actually need?

Accepted Answer

It depends on what the policy is funding. Pure income replacement uses 8-12x earnings as a starting benchmark, adjusted for outstanding obligations and dependents' time horizon. Key person coverage is sized to the financial impact of losing that person — recruitment cost, revenue disruption, contract risk, and lender requirements. Buy-sell coverage matches the contractually agreed buyout value of the ownership interest. Estate liquidity coverage is sized to expected estate tax exposure and illiquid asset concentrations. The right answer is rarely a single number — it's a layered program where each layer has a defined purpose.

Question 4

Will I need a medical exam?

Accepted Answer

For most underwritten policies, yes. Higher face amounts and certain product types require a paramedical exam (blood, urine, vital signs) plus medical record review. Some carriers offer accelerated underwriting for healthy applicants in specific age and face-amount bands — no exam, no fluids, decision in days. We position your application with the right carrier given your health, the coverage size, and the timeline.

Question 5

What underwriting factors most affect pricing?

Accepted Answer

Age, health, tobacco use, family medical history, occupation, hobbies (aviation, diving, etc.), driving record, foreign travel patterns, and financial qualification at higher face amounts. Two applicants with the same age and product can land at very different pricing — the right carrier match matters more on life insurance than on most other lines.

Question 6

I already have life insurance from years ago. Should I review it?

Accepted Answer

Yes. Existing policies often haven't been re-evaluated since they were issued — premiums may have changed, original needs may have shifted (kids grown, business sold, mortgage paid off), and underwriting standards have changed materially in the last decade. A no-cost policy review identifies whether existing coverage is still right-sized, properly structured, and competitively priced. Sometimes the answer is 'keep it as is.' Sometimes it's 'this policy is doing the wrong job and we can structure something better.'

Koosh Insurance · Life DivisionProtect what you've spent a lifetime building.

Coverage built for business owners

Key Person Insurance

Buy-Sell Agreements

Wealth Preservation

Family Protection

Why Koosh Insurance Life

Tailored for high-net-worth clients

Integrated with your commercial coverage

Access to top-rated carriers

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