Business Services
Payroll Deduction Life Insurance
In today’s workplace, good benefits can increase employee satisfaction. Employees want benefit choices, which leaves you as a business owner to decide what options to offer and how to handle costs. As you consider offering Life Insurance, you may wonder how much is needed? What about protection for family members? Payroll Deduction program helps your employees purchase quality insurance products and enhances your existing benefits package without increasing your employee benefit expense.
Payroll Deduction Life Insurance is a benefit that can help attract and retain quality employees, and you are giving your employees access to advice from an insurance professional. Your employees can build insurance programs according to their needs and budget without direct cost to you.
Program Features:
Enrollment process is simple and the plan is easy to administer:
Only a minimum of five employees need to participate to put the program in place.
Group with 15 eligible employees or more can qualify for guaranteed issue, which means your employees can’t be turned down for insurance for any reason.
Eligible employees are actively at work and must work at least 20-hours per week.
No required employee participation.
Low-key employee meetings and no-pressure enrollments are conducted at your facility and at convenient times for your and your employees.
Our monthly bills accommodate various payroll schedules.
Additional benefits:
Expansion of existing benefits at no direct cost
Employee contribution of 100 percent
Ability to manage increasing cost of benefits
Easy installation and administration
Greater employee satisfaction
Ability to attract and retain quality employees
Supplement to existing insurance coverage
Buy/Sell Agreements
A Buy–Sell Agreement, also known as a Buyout Agreement, is a legally binding agreement between co-owners of a business that governs the situation if a co-owner dies or is otherwise forced to leave the business, or chooses to leave the business. A Buy–Sell Agreement consists of several legally binding clauses in a business partnership or operating agreement or a separate, freestanding agreement, and controls the following business decisions:
Who can buy a departing partner's or shareholder's share of the business (this may include outsiders or be limited to other partners/shareholders)
What events will trigger a buyout (the most common events that trigger a buyout are: death, disability, retirement, or an owner leaving the company)
What price will be paid for a partner's or shareholder's interest in the partnership and so on
Retirement Extra
Increasing years in retirement means increasing need for a comprehensive financial strategy.
Did you know that many American professionals expect to spend up to one-third of their lives in retirement? Longer retirements can be attributed to two factors:
People are generally living longer.
People are retiring earlier to enjoy the fruits of their labor.
With this in mind, early implementation of a sold retirement strategy is essential for a secure financial future. In addition, there are other challenges that all Americans face:
Social Security Shortfall – As more and more baby-boomers reach retirement age, and with fewer workers available to pay Social Security taxes, government projections indicate the resources of the system will shrink and reductions in benefits many be necessary.
Premature Death – If your income stopped at your death, how would your family cope? A comprehensive financial strategy helps plan for these events and give you peace of mind.
Impact of Inflation – Inflation can have a huge impact on savings. For instance, if a couple can live comfortably on $50,000 a year in today’s dollars, take a look at how much they’ll need over the span of 30 years in retirement.
In light of these dilemmas, it’s good to know that with a little extra planning, you can work toward a secure future with confidence. Using Life Insurance is a strategy to combine death benefit protection with cash value, which can be used to help supplement retirement income. It can be an effective way to overcome some of the hurdles facing you, your colleagues, as well as all American citizens.
Key benefits of Using Life Insurance for the Retirement Extra Strategy
Death benefit protection is income-tax-free to your beneficiaries. Proceeds from an insurance policy are generally income-tax-free (e.g. absent a transfer for value), and if properly structured, may also be free from estate tax.
Within limits, you can pay extra premiums to the policy in order to potentially increase the policy’s cash value.
Premium payments are flexible, so you can also skip payments provided the policy has enough cash value to cover the cost associated with the policy.
Policy cash values grow income tax-deferred.
Loans and withdrawals before age 59 ½ will not incur a 10% federal penalty tax.
Minimum distributions are not required at age 70 ½.
Withdrawals and loans from the policy can be income-tax-free; however, if a policy lapses, outstanding loans become taxable in the year the policy lapses.
Loans and withdrawals may generate an income tax liability, reduce available cash value, and reduce the death benefit or cause the policy to lapse.
The Potential for Income-Tax-Free Distribution
Because Retirement Extra strategy uses Life Insurance at the foundation of its structure, you can access the cash value (above your basis) within your policy on an income-tax-free basis. This is achieved in a two-step process:
Withdrawals: You may withdraw an amount equal to the premiums paid into the policy, also known as your cost basis, income-tax-free.
Loans: Once you’ve withdrawn the cost basis from your cash value, your income stream can continue in the form of policy loans. Policy loans also are not taxable; however, please note that withdrawals and outstanding loans will reduce your policy cash value.
Withdrawals and loans from your policy have no impact on the qualification of your Social Security benefits, nor taxation of those benefits. Cash values exceeding the tax basis may be borrowed from the policy free of income taxes as long as the policy remains in-force. If the policy lapses or is surrendered before the insured’s death, the loan proceeds may become taxable.