Business succession planningĪ business succession plan can help protect your business when an owner-shareholder retires or passes away. This form of insurance provides protection for an executive's family, while you benefit from an investment offering tax-deferred growth. In this instance, both you and your executive purchase a tax-exempt life insurance policy with your executive named as the insured. Executive life insurance planningĮxecutive life insurance enables you to provide managers and executives with a supplementary benefit package. Ordinarily they would be paid out as taxable dividends, requiring approximately one third of the value to be paid in taxes. Not only that, but upon death, most, if not all, of the proceeds can be paid out of the corporation tax-free. Maximizing corporate assetsīy taking advantage of tax-deferred growth inside a Universal Life or Whole Life policy, corporate assets can avoid accrual taxation and grow to a much greater value than if they were invested in a regular account. If corporate assets are invested in fixed income, then an insurance strategy can not only reduce its taxable income but it will lower the value of the business by the amount of the investment, thereby reducing the inevitable capital gains tax liability. This arrangement can create a win-win situation for everyone.
It protects the company against the death of the employee, and motivates that person to remain with the firm through the enticement of an attractive, low-cost retirement asset.
Shared ownershipįor companies that wish to retain top employees, the shared ownership of a permanent insurance policy can be an attractive opportunity.
#Rbc home protector insurance contact full#
Insurance can provide an excellent method of funding buyout agreements so that the remaining partner takes full control of the business and the surviving family is properly compensated. In the case of partnerships, the death or disability of one partner can have a devastating effect on the survival of a business. We have access to a wide array of business protection strategies: Funding buyout agreements An important part of preparing your business for continued success is to prepare it for the unexpected. We can provide you with access to a vast array of products and services geared towards the needs of businesses and corporations. It is a tax-efficient means of transferring wealth out of a corporation into the hands of the next generation when you pass away. Some of the best opportunities for small corporations, including holding companies, come from using tax-exempt life insurance. Making the right financial decisions is a big responsibility – and we can help.
And you know how important it is to have the best possible services and products to help effectively manage your finances. Every day, you make crucial business decisions affecting the financial health of your business organization.