A Buy-Sell Agreement is an agreement entered into between the co-owners of a business which governs the situation if one owner dies, becomes disabled, or otherwise leaves the business.Buy-Sell Agreements are critical to business continuity and succession planning. Life insurance is often the funding vehicle for Buy-Sell Agreements, and we can help structure the coverage.Key Features:-Ensures continuity of the business-Protects owners’ interests-Sets a fair market value for business interests-Life insurance provides immediate funds for the purchase of the deceased owner’s business interest-May help avoid conflict among surviving owners and heirs.Common Structures:-Cross-Purchase Agreement: Each owner purchases life insurance on the other owners.-Entity Purchase Agreement: The business entity purchases life insurance on each owner.-Wait-and-See Agreement: A hybrid approach allowing the business or remaining owners to purchase the interest.

Qualified Retirement Plans can provide tax benefits and help attract and retain employees. These plans must meet certain requirements set by the IRS. We help structure and implement:- Defined Contribution Plans (e.g., 401(k), Profit Sharing)-Defined Benefit Plans (e.g., Traditional Pension Plans)-Cash Balance Plans Benefits of Qualified Plans:- Tax-deferred growth of retirement assets-Employer contributions are generally tax-deductible- Helps attract and retain top talent We work with third-party administrators and retirement plan specialists to design and implement the best qualified plan for your client’s situation.

Executive Benefits help reward and retain key executives. These are non-qualified benefit plans that can provide significant value to top talent.Examples:-Supplemental Executive Retirement Plans (SERPs): An employer-funded deferred compensation arrangement.-Executive Bonus Plans (Section 162 Plans): The employer pays a bonus to the executive who uses it to purchase personal life insurance.Benefits:-Attracts and retains key employees-Provides retirement and/or death benefits to executives-Can be customized based on performance or tenureThese plans can be funded with permanent life insurance, allowing for tax-deferred growth and potentially tax-free distribution.

We work with carriers that will underwrite life insurance for Foreign Nationals. This is an important market segment with specific guidelines.Key Considerations:-Must have a valid reason for U.S.-based coverage (e.g., U.S. property, business interests, family)-Financial justification and documentation are critical-Underwriting is more complex and may require foreign travel and residency informationWe assist with navigating the carrier requirements and help determine:-Minimum presence requirements (e.g., days physically present in the U.S.)-Acceptable countries of residence and citizenship-Availability of medical exams and financial records-Structuring ownership for favorable tax treatment (e.g., using trusts or business entities)

We have access to carriers that offer guaranteed issue and simplified underwriting programs for multiple employees or executives. These programs require limited or no medical underwriting.Ideal for:Employer groupsBusiness owners wanting to cover multiple key employeesAssociationsBenefits:Streamlined underwritingMinimal health questions or examsFast turnaroundCoverage for individuals who might otherwise be uninsurableWe can help determine if your group qualifies and design a customized solution.

Bonus Arrangements (e.g., Section 162 Executive Bonus Plans) allow employers to provide life insurance benefits to employees as a form of compensation.How it works:-The employer pays a bonus to the employee-The employee uses the bonus to purchase a personal life insurance policy-The policy builds cash value and provides death benefit protectionOptions:Single bonus: Employer pays the premiumDouble bonus: Employer pays the premium and provides additional funds to cover taxesBenefits:Simple to implementNo IRS filing or approval requiredFully owned by the employeeCan be structured to include restrictive endorsements to retain employees

Premium Financing allows high net worth individuals to purchase large life insurance policies using borrowed funds rather than liquidating assets. This strategy can be effective for estate planning and wealth transfer.Structure:The client borrows funds from a third-party lenderThe loan is used to pay premiums on a life insurance policyCollateral may include the policy’s cash value and other personal assetsThe client repays the loan, typically from the policy’s death benefit or other sourcesKey Considerations:Must be suitable for the client’s financial situation and risk toleranceInvolves complex planning and coordination with legal and tax advisorsRequires ongoing monitoring and annual reviewBenefits:Preserve capital and investment portfolioAccess to large life insurance coveragePotentially greater internal rate of return on estate planning

Split Dollar is a method of sharing the costs and benefits of a life insurance policy between two parties, typically an employer and employee.Types:-Loan Regime: The employer lends the premium to the employee.-Economic Benefit Regime: The employee reports the value of the insurance benefit as income.Benefits:-Cost-effective way to provide life insurance benefits-Can be used to retain key employees-Flexible design and funding optionsSplit dollar arrangements must be carefully documented and administered.

Key Person Insurance protects a business against the financial loss that can result from the death or disability of a key employee.Benefits:-Provides funds to offset lost revenue and recruiting/training costsReassures creditors, investors, and clientsCan be used to fund a buyout or replacementThe business owns the policy, pays the premiums, and is the beneficiary. Coverage amount should reflect the key person’s contribution to the business.