WALT DISNEY, used a loan from the cash value of his personal life insurance policy to finance its first theme park, Disneyland, in California.
The owner of McDonald's used loans from his two cash value liofe insurance policies and bank loans to cover the salaries of key employees in the early years of the company.
STANFORD UNIVERSITY used the death proceeds of its founder to weather a period of financial difficulty.
The founder of PAMPERED CHEF borrowed cash from the cash value of her life insurance policy to start the company.
THE VALUE PROPOSITION OF LIFE INSURANCE TO A BUSINESS OWNER
There are many business needs that can be addressed using life insurance. For example, the death benefit can be valuable to:
-Repay a business loan
-Protect the business from financial hardship due to the death of the business owner or key employee
-Fund a succession plan with the surviving owners
-Pay estate taxes associated with the business interests included in the owner's estate
ADDITIONALLY A PERMANENT LIFE INSURANCE POLICY WITH CASH VALUE CAN:
-Provide supplemental retirement income to the business owner
-Informally fund an executive benefit plan that will attract and retain top management personnel or other key employees
-Be accessed for additional funds to help support or grow the business
