By now, most know that Principal’s BOES platform is available to all CBS Advisors. What may not be apparent is how to use it to win cases and grow your practice. Whether front end resources like training and fact finders or largely misunderstood elements like Principal’s administrative capabilities, these tools need to be fully understood in order to be deployed effectively. Let’s face it, unless you have taken the time to research and understand this platform, you don’t know BOES.

The Sale

When dealing with a Key Person case, most advisors immediately think about death benefit and a term insurance solution. A more nuanced approach uncovers that there are many other aspects to consider and that the best solution might not be as simple as a ten year term contract.  Consider some of the other ways an employer may find themselves suffering from the loss of a key employee:

  • Disability
  • Retirement
  • Lost to a competitor

Any of these have the same result as a death: lost revenue and the need to replace that key employee. The experts on the BOES Team at Principal can help articulate these risks, and design solutions that fit the client’s specific concerns.

The Process

Regardless of the product solution, a Key Person sale uses a very simple structure:

The business is the owner and beneficiary of a life insurance policy that insures a key employee.  Then, upon an unexpected death, the business receives the death proceeds, generally income tax-free.


The Client

The question of who is or is not a Key Person has answers as varied and unique as the businesses they work in. Consider focusing on the “difference makers” inside the organization in these areas:

  • Operations
  • Key Customer Relationships
  • Sales Volume and Profitability

The Fact Finder and Quantifying the Risk

How much insurance is enough? If you are using the 5 times compensation approach you may be under insuring the risk. Use Principal’s resources to truly understand the risk to the business, how to quantify it and get it through financial underwriting the first time. Start with the Key Person Calculator or a Request for Proposal.

The Product

Are you showing anything beyond term insurance? If not, you may be walking away from the bigger sale that would protect the business on multiple fronts. Learn how Key Person funded with permanent insurance can do double duty by helping to retain Key Employees.  Understanding the multifaceted nature of the risk highlights why a permanent solution with real cash value may be the right answer.

Product 2

The Underwriting

Have a willing buyer? Use Accelerated Underwriting to get the case through quickly for face amounts of $1MM or less.

The Administration

Even if it is term insurance, there is a real need for effective reporting and administration in any corporate owned insurance program. Learn from the pros at Principal why their no-cost administration platform is a critical part of working in this space.

The Training and Resources

While there is a ton of information in this email, there is much, much more to the Key Person story.  See below for more training resources on Key Person and the BOES Platform: