By investing in a company owned permanent life insurance policy, business owners may be able to fund a current income for themselves, as well as retain any surplus funds inside of their company – while also allowing the funds within their life insurance policy to grow on a tax-deferred basis.
Business owners can use premium financing as a way to have access to a tax-deferred investment vehicle while also having tax-free use of the funds, if needed. These individuals find that by using life insurance premium financing, they can not only take advantage of tax-deferred growth on the cash value build up inside the plan, but also have a set amount of life insurance protection for their loved ones in the future.
Those who are a partner or owner of a business may also be able to use life insurance in this way in order to cover the loss of key employees or to fund a buy-sell agreement; which essentially may help to protect their company upon the death of the owner or other key executives.
By using premium financing on a permanent life insurance policy, business owners have the flexibility to access the protection, the security of tax-deferred investments, and the liquidity that is needed in the business environment. In addition, the funds can also typically be used for personal benefit as well.
Enter The Palisades Pension Plan. Through Capital Crest Financial Group’s exclusive program, business can set these plans up pursuant to a vesting schedule to ensure retention of their top employees. This strategy may also increase the profitability of the company by way of these permanent life insurance policies and the cash associated with them.
Reach out today to learn more!