Business decisions are made every day which affect the financial health of your business or Professional Corporation. Having the best possible tools to help effectively manage your business finances are crucial but even more important are how you combine them. At Ensure Capital we strive to bring you cutting edge strategies aimed at helping your businesses grow to protect what you value most.
Using tax-exempt life insurance or annuities is a tax-efficient means of transferring wealth out of a corporation and into the hands of the next generation.
Funding Buyout Agreements
In the case of partnerships insurance Ensure Capital can provide a method of funding buyout agreements so that the remaining partner takes full control of the business and the surviving family is properly compensated.
Shared ownership of a permanent insurance policy can be an attractive way of protecting the company against the death of an employee.
Minimizing Corporate Taxes
Insurance can not only reduce a corporation’s taxable income but can help lower the value of the business by the amount of the investment, in turn reducing the capital gains tax liability.
Maximizing Corporate Assets
Using a Universal Life or Whole Life policies tax deferred capabilities; corporate assets can avoid accrual taxation and therefore grow to a much greater value then if invested in the traditional format. In addition to the tax benefits, upon death the proceeds can be paid out of the corporation tax-free hence saving about 33% of the tax liability.
Executive Life Insurance Planning
Provide managers and executives with Executive life insurance packages which serve to protect an executive’s family, while you benefit from an investment offering tax-deferred growth
Business Succession Planning
When an owner-shareholder retires or passes away a business succession plan can help protect your business. At Ensure Capital we will help you structure a proper succession plan which includes buy-sell agreements, a Will and powers of attorney.
Insurance is a great way of providing the necessary funds to the corporation for the purchase of a deceased shareholders unit shares in the business.
Key Person Insurance
For companies which rely on the skills and contributions of a single person; their sudden departure can create a financial void difficult to overcome. Taking out life insurance on this “key person” or these “key people” can help mitigate this cost.