Corporate Retirement

The corporate retirement strategy combines the purchase of life insurance, the growth of tax-free cash value, tax-free retirement income, and a tax-free death benefit.

We work with you and your legal and tax advisors to reach the following objectives:

• • Transfer some of your corporate surplus ( retained earnings) into a tax-deferred insurance program to reduce your corporate tax bill.
  • Purchase a corporate-owned and paid life insurance policy on the life of the business owner or key person.
  • Create a creditor-protected asset environment.

Once the policy has accumulated a significant amount of cash value, the corporation, holding company, or shareholder can access the funds for retirement through:

• • A series of withdrawals or policy loans.
  • Line of credit from the available lenders associated with this program and using the policy as collateral.

Depending on the arrangement with the lender, the interest and principal balance of the loan may be capitalized or paid on an annual basis.

At the death of the insured, the loan is repaid by the company from the tax-free death benefit proceeds from the policy, or through the insured’s estate from monies received through the capital dividend account.

This strategy requires your trusted advisors to understand the benefits and drawbacks in order to assure that your best interests are always met. This corporate strategy is just one of many programs have built for our clients.