At Nationwide, we know small business solutions. We’ve got the experience, knowledge and solutions to help your business clients attract, retain and reward top talent while protecting their businesses.

We’ve developed a solution finder to help your small business clients select solutions that are right for them.

Identify client needs

Which to choose: A key person insurance plan? A buy/sell arrangement? An executive bonus plan? An insurance-based retirement plan? One of the other options?

With answers to just a few questions, the Nationwide Small Business Solutions Analyzer will offer a specific recommendation for your client.

Have small-business clients but don’t know which life insurance solution is right for their business? Answer a few questions and get a recommendation from the Nationwide Small Business Solutions Analyzer.

NFW-5809AO

Solutions for recruiting and rewarding top talent

Businesses need to compete aggressively to attract and keep their top employees.

One solution to retain these employees is offering a specialized plan to meet their unique needs and reward them for their contributions.

Explore our solutions below and see which will work best for your client.

Business succession

The sustainability of a small business often depends on the performance of the owner or another key employee. Small business clients need protection against the loss of this person.

Buy/sell arrangements

A buy/sell arrangement, properly funded with life insurance, can help protect the business in the event of the death of an owner. There are 2 typical structures to consider: cross-purchase and entity redemption.

Key person insurance

With key person insurance, the business buys life insurance on a key employee. If the key person passes away, the business receives the policy’s death benefit to help recover lost income or to cover costs while recruiting and training a new employee.

Protection

When your small business clients have the right people working for their business, they want to offer benefits that make them feel valued.

Collateral assignment split dollar plan

Under this type of arrangement, the business loans money to an employee to pay premiums on a life insurance policy that the employee owns. The policy will serve as collateral for the agreement

Endorsement split dollar plan

Under this type of arrangement, the business purchases and owns an insurance policy on the life of an employee. The business gets a return of premiums when the employee separates from service or dies.

Key person insurance

With key person insurance, the business buys life insurance on a key employee. If the key person passes away, the business receives the policy’s death benefit to help recover lost income or to cover costs while recruiting and training a new employee.

Supplemental retirement

Your small business clients know that once they’ve secured top talent, it’s important to keep those individuals happy. Nationwide offers several options to help the keep their key employees satisfied.

Executive bonus plan

This solution allows small business owners to offer their employees a bonus in the form of a life insurance policy that the business pays for directly. They can add a restriction to ensure that major changes aren’t made to the policy without the business owner’s consent.

Insurance-based income solutions

This solution can be an added benefit to employees so they can protect their families with life insurance while saving for retirement.

Nonqualified deferred compensation plan

This solution slows small business owners to reward key employees with a nonqualified deferred compensation plan funded with life insurance to help them save for retirement.

Supplemental executive retirement plan (SERP): Defined benefit

A defined benefit SERP allows employers to make retirement contributions to an account earmarked for a key employee. At retirement the employee receives payments based on a predefined benefit amount.

Supplemental executive retirement plan (SERP): Defined contribution

A defined contribution SERP allows employers to make retirement contributions to an account earmarked for a key employee. At retirement the employee receives payments based on the current account value.

Contact the Nationwide Business Solutions Group
Send us a note. We love questions and will get back to you as soon as possible.
 NFW-10513AO

As situations change, so will the business's life insurance needs. Care should be taken to ensure these strategies and products are suitable for the business's and the client's long-term goals. Weigh the business's objectives, time horizon and risk tolerance as well as any associated costs before investing. Also, be aware that market volatility can lead to the possibility of the need for additional premium in the policy. Variable life insurance has fees and charges associated with it, which include costs of insurance, underlying fund expenses and administration fees. Investing involves risk, including possible loss of principal. Nationwide and its representatives do not give legal or tax advice. An attorney or tax advisor should be consulted for answers to specific questions.

Variable life insurance has fees and charges associated with it that include costs of insurance that vary with such characteristics of the insured as gender, health and age, underlying fund charges and expenses, and additional charges for riders that customize a policy to fit their individual needs. Variable products are sold by prospectus. You can obtain the product prospectus and underlying fund prospectuses by writing to Nationwide Life Insurance Company, P.O. Box 182021, Columbus, OH 43218-2021. Before you invest, you should read the prospectus carefully and consider investment objectives, risks, charges and expenses. The product prospectus and underlying fund prospectus contain this and other important information.

Loans and withdrawals will reduce the death benefit. Most distributions will be taxed on a first-in/first-out basis, as long as the contract is not a modified endowment contract (MEC) according to Section 7702A of the Internal Revenue Code. Loans from a MEC are generally taxable and subject to a 10% tax penalty if taken before age 59 1/2. If the policy lapses with a loan outstanding, it will be treated as a distribution and some or all of the amount may be taxable.

Guarantees and protections are subject to Nationwide's claims-paying ability. They do not apply to the investment performance or safety of the underlying investment options.

Investment products are not FDIC-insured, may lose value and have no bank guarantee.

NFW-5428AO