Allows business owners to protect their business and retain key employees

Principal Financial Group has offered a new business insurance rider available on Principal Universal Life Flex policies, through which the employers can get both protection and early cash value. The new policy covers protection of their businesses and allows to retain employees.

According to Principal Financial, the surrender value enhancement rider gives policyholders the option to accumulate high cash value early in the policy helping to preserve capital and create liquidity.

The company said that the cash value of a business owned policy shows up on the balance statement as an asset of the company. The rider increases early cash value which reduces the hit to company earnings created by the difference between the premium and the cash value of the policy, and the business insurance offers tax-advantaged savings.

Steve Parrish, consultant of national advanced solutions at Principal Financial Group, said: “Small-to-medium sized businesses face a number of challenges from building their business to retaining key employees. Business insurance gives owners the flexibility to protect their business or to offer the insurance as a benefit to their key employees as a retention tool.

“One of the most important lessons learned from the financial crisis is the value of diversification. Business insurance blends protection and liquidity, making it a solid addition to any business financial plan.”