Sun Life Financial Launches Business Succession Planning

Toronto — The U.S. Retail Insurance and Annuity Division of Sun Life Financial Inc., Toronto, has enhanced its business succession planning program, which enables owners to manage the transition of their business to future owners and management. Sun Life’s program provides the necessary tools and education for advisors to guide small and family business owners through this process and ultimately help their customers successfully pass on what they have worked hard to build.

Considering that 90% of businesses in the United States are closely held, as this business sector grows, so does the opportunity for advisors to give owners basic business protection, says the company. Only 25% to 30% of closely held businesses have a succession plan in place. As a result, only 30% continue to the second generation, and less than 10% to a third.

“The number of small businesses in the United States is growing, but few of them have a plan that allows for an orderly transition of the business at the time of the owner’s retirement, disability or death,” says Janice Forgays, Esq., CLU, Sun Life VP, Advanced Markets. “Knowing that succession can be a difficult topic for many small business owners to discuss, Sun Life’s program provides the tools and advice that advisors need when talking to clients about the necessary financial and legal steps to take regarding business succession and protection.”

Sun Life’s business succession planning program provides advisors with the materials and strategies to address the challenges that business owners face when building a succession plan. The program guides advisors through two traditional strategies: buy/sell agreements and key person insurance, while providing sales ideas, case studies, a fact finder and new producer and business owner guides.

Source: Sun Life