Tax Advantages
There can be many advantages to the use of life insurance as a planning tool in addition to the death benefit. That being said, having a sound plan requires having sound advice. Specific rules, guidelines and policy structure must be strictly adhered to in order to receive the maximum benefit. This can result in tax advantages being lost and additional fees or costs imposed. Each case is different and requires a customized plan to ensure the best strategy is set in place. The following is a list of potential benefits and not tax advice.
- Tax Free Death Benefit
- Tax Free growth of cash value
- Tax free distributions
- Tax free transfer of wealth
Business Owners
Funding the Buy/Sell Agreement
Employee Recruitment and Retention
Funding the Buy/Sell Agreement
Businesses held by multiple owners can face financial difficulties due to the death of one of the owners. Life Insurance can provide the influx of cash to buy out the family of the deceased owner.
Key Man Coverage
Employee Recruitment and Retention
Funding the Buy/Sell Agreement
The loss of a key employee will typically have a financial impact to a business. Life Insurance can provide the necessary in flow of cash to sustain a business while a replacement can be found.
Employee Recruitment and Retention
Employee Recruitment and Retention
Employee Recruitment and Retention
Top employees can be hard to find and costly to replace. Funding a cash value life insurance policy can be appealing in providing "golden handcuffs" in retaining the most valuable employees.
Retirement Funding
Succession Planning
Employee Recruitment and Retention
Funding the right type of cash value life insurance policy can provide a tax free retirement income protected from the risk of stock market losses
Cash Reserve
Succession Planning
Succession Planning
A business owner who owns a cash value life insurance policy can borrow against the accumulated cash value for a variety of purposes, including to help the business weather uncertain economic times, pay overhead expenses, or provide supplemental cash flow
Succession Planning
Succession Planning
Succession Planning
Many business owners would like to pass down the business to their family. However, everyone may not be qualified or interested in taking over the responsibility of running a business. Life Insurance can be a way to distribute assets equally and fair to all members.