MMC Benefits strives to offer effective insurance and benefits strategies to small business owners like you to protect what you value most in your business.
For example, using tax-exempt life insurance is a tax-efficient means of transferring wealth out of a corporation and into the hands of the next generation. Here are more articles about the role of insurance in a sound business financial or personal plan.
Also, you can read more about the retirement benefits we can offer to small businesses.
Insurance strategies, and more importantly, how they are combined, can help you manage your business finances effectively. Here are some of the insurance solutions we offer.
Funding Buyout Agreements
In the case of partnerships insurance 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.
Business Succession Planning
When an owner-shareholder retires or passes away a business succession plan can help protect your business. At MMC Benefits, we will help you structure an appropriate succession plan which includes buy-sell agreements, a Will and powers of attorney. Since Lincoln Financial securities and their representatives do not offer tax or legal advice, we can use your current tax and legal professionals.
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 that 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.
Shared ownership of a permanent insurance policy can be an attractive way of protecting the company against the death of an employee.
Striving to Minimize Corporate Taxes
Insurance not only can reduce a corporation’s taxable income; it also can help lower the value of the business by the amount of the investment, in turn reducing the capital gains tax liability.
Striving to Maximize Corporate Assets
Using a Universal Life or Whole Life policies tax deferred capabilities; corporate assets can avoid accrual taxation and therefore potentially grow to a much greater value than if invested in the traditional format. In addition to the tax benefits, upon death the proceeds can be paid out of the corporation tax-favored hence saving about 33% of the tax liability.
Executive Life Insurance Planning
Executive life insurance packages for managers and executives serve to protect an executive’s family, while you benefit from an investment offering tax-deferred growth.