Leveraged Planning® solutions for business provide clients with a need for life insurance a great deal of flexibility in the design and implementation of a life insurance or annuity based premium financing strategy. Whether it’s a complex group life program, key man policy funding, or a business continuity program, leveraged planning solutions can be custom tailored to fit the needs of any business borrower.
Key Person
Key employees – those individuals who are nearly indispensable to the organization – typically provide so much firm value that their loss would be financially detrimental for the firm. In these cases, a high cash value life insurance policy can provide the firm with an economic buffer to weather the troubles that could arise from the loss of such a valued team member.
Leveraged Planning solutions provide a business with the means to execute a plan for the contingency of loss of a key man while reducing the often-high capital outlays necessary to fund the life insurance premiums.
Mac Advisory Group and its affiliate can design and facilitate funding of a life insurance policy that is tailored to provide the business with sufficient resources to offset the loss of a key employee. Mac Advisory Group’s unique competencies, high-touch service and favorable rates and terms make us the leading choice to fund these mission-critical strategies.
Buy-Sell
Often similar in many respects to a key man strategy, the buy-sell provides a multi-owner business with a means to plan for the loss or exit of an owner by implementing a strategy to insure that the remaining owners can acquire the ownership stake held by the former partner. One of the primary benefits of a buy-sell agreement is that the remaining owners are not forced to search for a new buyer or partner to join the business.
Generally relying upon a high cash value life insurance policy these buy-sell agreements can often best be funded using a Leveraged Planning solution. With this approach, the firm is able to use a commercial loan to put in place a plan for business continuity for a group of owners while maintaining a higher level of liquidity than might otherwise exist if the firm were to pay for premiums directly.
Mac Advisory Group is able to help facilitate the design and funding of a life-insurance based buy-sell agreement that can help insure business continuity in the event of unforeseen, potentially-disruptive changes for business owners. Mac Advisory Group’s unique competencies, ability to work with legal and financial advisors, high-touch service, and favorable rates and terms make us the leading choice to fund these mission-critical strategies.
Executive Compensation
In the modern employment environment, high quality executive talent is often most easily recruited and retained when the benefit package includes a strong executive retirement plan.
Funding executive compensation plans can often present a challenge for business owners. High cash value life insurance plans can prove to be an ideal tool for providing corporate leaders with a significant future economic benefit both during their lives – and potentially for their heirs. Premiums for these policies can be expensive, though – that’s where a Leveraged Planning solution can help.
By using a commercial loan approach, the firm can protect business asset liquidity while still providing a suitable compensation structure designed to appeal to their executives.
Mac Advisory Group’s experienced staff can work with businesses and their financial and legal representatives to assist in the crafting and funding of a life-insurance based executive compensation agreement that will help to improve key employee retention and insure that valuable human resources remain within the organization.
Mac Advisory Group’s unique competencies, high-touch service and favorable rates and terms make us the leading choice to fund these mission-critical strategies.
Our firm is not permitted to offer, and no statement contained herein shall constitute, tax or legal advice.
You should consult a legal or tax professional on any such matters.