“I met Seth Morton a Minority Business Development Agency meeting in New York. He mentioned that business owners need to protect both their personal and business obligations through partnership agreements and succession plans. After a detailed review of Beacon’s financial statements, we discovered that there were no written agreements between the partners and no way to use life insurance to fund the buyout of one partner by the other in the event of death. Seth’s attention to follow-up and detail helped me know more about my business and how to protect what I am working so hard to build.” –Wayne Purville, Beacon Light and Supply
“When we spoke to Seth, we asked him about how to value a business, which is an IT service business with few assets and no debt. We looked at a multiple of our annual earnings as the value, and used life insurance to fund replacement income if we die. We set up an arrangement so that we would each be the beneficiaries of the other’s policy. Under the Agreement we would buy the share of the other’s business and the deceased’s family would receive the income replacement death benefit.” –Carlos Diaz and Warren Campbell, Vulcan Business Solutions
“I have a small business, and I wanted to find a way to secure my life and build a cash reserve for future use. I found in talking to Seth that a whole life policy would meet both objectives at a reasonable cost. By taking time out to look at my financial picture and set up a plan I was able to achieve peace of mind.” –Lailah Harrigan, Passion for Silver
“I met with Seth because I had no life insurance and wanted to review my options with him. In the course of a financial review I mentioned that I have a partner and we own a commercial building together. The question was what would happen to the partnership if one of us died. Seth introduced me to a way to cross insure each partner with life insurance for half of the value of the property. Each partner is the Beneficiary of the other partner’s policy with a written Buy-Sell Agreement between the partners. The death benefit goes to the surviving partner tax free. He buys out the former partner’s share of the company for cash. The result provides for an easy transfer of ownership of the business. We appreciated Seth’s attention to detail and follow-up in solving this issue.” –Mike Weigold, Weigold Electric, Greenwich CT
“My CNC machine shop does “prototype” to “short run” production machining, and I had been thinking about my succession plan. I discussed with Seth about passing it to a trusted employee. He would buy the business from my estate, using life insurance on me with an Agreement to use the death benefit to make the purchase. Having established a value for the business, I first set my wife as the beneficiary, with the idea that in the future I would set up the employee. Seth made the process easy to understand and I also found that Seth could offer Disability insurance to my employees so we took care of two things at once.” -Ralph Milone, Xcel Tool and Manufacturing LLC
Facts to Know: More people protect their “things” than their families.
*Birthday is important because life insurance illustrations look 6 months forward to the next birthday when they calculate premiums.