| BUSINESS CONTINUATION PLANNING |
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| HEALTH INSURANCE IS A FORM OF FINANCIAL SELF-DEFENSE-(click pic for Blue Cross Insta-Quote). |
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KEY-PERSON INSURANCE
The small to large business owner makes more than a simple monetary investment in the successful venture: he/she also invests his/her time, energy and labor. As such, the successful business thrives with the life-blood of its owners. Your Business is probably your most valuable asset. You've spent years building it into a profitable enterprise. An unexpected death can cause severe problems. If your partner dies, you may find yourself in business with his/her heirs. If you die, your family may be working with your partners. In either case the business may not be able to replace the knowledge lost; it may cease to be profitable. If this happens, it may have to be liquidated. You can prepare for the problems which come with changes in ownership. Business continuation planning encompasses the BUY-SELL Agreement. This is the most overlooked business continuation tool, a tool that is so valuable to a business, that it may not survive without it. The BUY-SELL Agreement funded by Life Insurance, Trust Deed or a Sinking Fund, is designed to fit your company's structure.
**In 1939 the Supreme Court set a precedent and Up-Held the insurance contract of the partnership funding agreement, to be the true intent of the deceased partner and the death benefit remained as the fair-market-value of that partner's equity.!!!
Here are some of your alternatives:
*C Corp.--This agreement guarantees a market for a deceased owner's stock and converts it into cash. The ENTITY PURCHASE, will retire those shares and indemnify your business (Funding should be reviewed semi-annually to maintain fair market value).
*S Corp.--The CROSS PURCHASE agreement: Surviving partners can assure themselves they will retain control, receive stepped-up-basis (valuation) i.e avoid capital gains tax on partners equity transfered... You can set a predetermined value for your business, keeping the IRS out of the valuation process. You can keep unwanted partners out of your business affairs (First Colony Life, Allianz Life/ Member of the Allianz Group).
*Disability Buy-Out: The Disability Buy-Out policy provides cash to assist in the purchase of a disabled partner's business interest by the remaining owners. The policy owner may be an insured's partner/co-owner or the business itself, depending on the Buy-Out arrangement. We will issue from 75%, up to 100% of the market value of the proposed insured's share of the Business. The Amount is a function of the waiting period and funding method selected (i.e. LUMP SUM or MONTHLY/DOWN PAYMENT.) Minimum issue is $20,000 of Buy-Out Amount (Guardian/Berkshire Life & Principal Financial Group).
WE WILL ALSO STRUCTURE TO FIT YOUR COMPANY'S NEEDS:
*Key-Person Insurance programs: considerable time and money may be needed to find and train a replacement. The the key-person life insurance helps recover the economic loss of that employee(s) or retain that key employee with the proverbial "GOLDEN HANDCUFFS" (Allianz Life, First Penn Pacific, First Colony Life)
*Non-Qualified Deferred Compensation-Executive Bonus plans (IRS codes, 162, 79(c), PS 58-offset) . If your Corporation does not offer stock options to it's Executives than this is the benefit you should employ to retain His/Her talent.(Allianz Life)
Ideal candidate age 30 to 50 years old.
EQUITY INDEX LIFEFUND III POLICY
Finally, you have an alternative to traditional life insurance. Along with essential benefits for death, illness, and disability, Equity Index LifeFund III offers you enhanced cash accumulation, living benefits and retirement options.
Accumulation:
* Diversify your cash value between the S&P-500, and/or Nasdaq-100 with indexing and peg your growth to the market(s) or allocate to the fixed-interest account (presently 4.75%).
* Added security of knowing that you have downside protection against adverse market conditions i.e. your index interest credit can never be less than ZERO.
LIVING BENEFITS:
* Access cash up to 50% or $50,000 maximum of the LifeFund III Death Benefit should a spouse pre-decease the insured.
* Have access to the LifeFund III Death Benefit up to 10% or $10,000 maximum, should a child pre-decease the insured.
* The insured can receive a percentage of the LifeFund III in a lump sum check based on a diagnosis and supporting documentation of illness or accident of 50% up to a maximum of $250,000.
* Should the insured become disabled, receive 1% of the death benefit monthly as a disability income living benefit.
INCOME FOR LIFE:
* On the 15th policy year or the year in which the insured turns age 65, CONVERT the cash value into an income stream with the 300% Preferred Settlement Value option (3x benefit).
E.G. $60,000 in policy cash value with the 300% Preferred Settlement Value option becomes $180,000 to generate a life-time income stream...(Polices underwritten by Allianz Life Insurance)
*Non-Qualified Salary Continuation using Disability Insurance:
The only thing worse than being disabled is not being able to afford it. Accidents and illnesses can unexpectedly prevent you from earning a living. Have you ever thought about what you would do if you were unable to work because you were totally disabled due to an Injury or Sickness?
* What are the chances that you may suffer a disabling injury?
* On average, 2,530 disabling injuries occur each hour.
* Americans experienced 22.1 million disabling injuries in 2002.
* 4.25 million American workers suffered disabling injuries while on-the-job in 2003.
* At age 32, a disability of 3 months or longer is 6 times more likely to occur than death.
* Your corporation can provide you and your employees with personal disability insurance which continues a portion of your salary when you are unable to earn it. The premiums are TAX DEDUCTIBLE (IRS code 106 & 162).
*Own-Occ & Income replacement policy along with Professional & Business overhead expense policies (Guardian Life, Berkshire Life, Met Life, Principal Financial Group).
*Unique investments that will give your SEP-IRA or Keogh plan exceptional appreciation (Mutual Benefits Corp).
Group:
*Group Term Insurance (American Heritage Life).
*Group Disability
(7-day, 14-day and 30-day elimination periods).
*Group Health/Medical Insurance
(Nationwide Health Plans, Blue Cross, Health Net, Western Health Advantage, Assurant Health).
*Group Annuities for your 401k roll-out (Principal Financial Group)
Additional annuity products please view the ANNUITY page
In today's job market, the most frequently asked question is "What kind of benefits do you offer?" Benefits secure the employment of an asset to your business, which may otherwise go to your competition. We design these unique benefits to help retain that talented employee(s). CALL or EMAIL with inquiry.
ShortTerm Medical Plans, Bridging the gap during unemployment, free Quote.
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