Businesses

Businesses

While staying within the context of your business’ overall corporate financial goals, our plans are designed to help ensure that, no matter what uncertainty lies in front of your business, it will remain and prosper. BEJS focuses on three major areas regarding preservation of your company’s future.

Key Person Insurance
A business today may be in serious trouble if it loses one of its key employees.  The loss of these employees could be from a variety of sources: accident, illness, death, or leaving to work with a competitor.  Proper planning is a necessity in order to retain these key employees while, at the same time, staying true to corporate financial directives. BEJS can provide solutions that could fund the business during the period of time in which a suitable replacement is found; or it could provide liquidity for surviving partners to purchase a deceased partner’s portion of the business from his/her estate.

Non-qualified Plan Funding
BEJS can also help a business retain key employees by designing, implementing, and administering cost efficient and effective executive benefit plans that supplement restrictive qualified retirement and group insurance plans.

Business Continuity

BEJS provides businesses with valuable benefits in the realm of Business Continuity planning. When a business owner faces the challenge of ensuring both the future of the business and fair treatment of family members, BEJS can offer effective solutions.

Our solutions strive to assist businesses in developing continuity plans that maintain the company’s stability and secure the interests of all involved parties, including family members and heirs, in the event of unforeseen circumstances. Such planning can help ensure a smooth transition of business ownership and assets, contributing to the long-term success and stability of the business.

Deferred Compensation Solution

BEJS offers businesses valuable benefits in the realm of Deferred Compensation Solutions. In situations where key executives seek to protect substantial bonus income from income taxes and face limitations in contributing to the company-sponsored 401(k) plan due to participation rates, BEJS can provide effective solutions.

For instance, BEJS can collaborate with the company to design a plan that allows executives to defer a portion of their salary and bonus on a pre-tax basis. This plan can also offer the option for additional “discriminatory” contributions by the company. As a result:

  1. Executives can accumulate significant deferred compensation balances, which grow tax-deferred until retirement.
  2. The company incurs a “Profit and Loss” (P&L) cost equivalent to only the after-tax cost of the “match” that executives previously had to forego.

Overall, BEJS helps businesses address the complex issue of executive compensation, allowing companies to attract and retain top talent while optimizing the tax benefits for both executives and the organization.

Corporate Owned Life Insurance Policy Review

BEJS offers businesses measurable benefits by providing Life Insurance Policy Reviews. In cases where a privately-owned company intends to use life insurance coverage for executives to cover costs related to various benefits plans, BEJS can aid.

Through a policy review and program evaluation, BEJS can recommend more appropriately designed insurance products, often with proprietary pricing features available on a guaranteed issue basis. The outcomes of such reviews often include:

  1. Increased Death Benefit: The current death benefit can see a significant increase without incurring additional costs for the company.
  2. Simplified Underwriting: By utilizing guaranteed issue options, the need for busy executives to undergo time-consuming underwriting processes is eliminated.

Overall, BEJS helps businesses optimize their corporate-owned life insurance policies, enhancing the value of these policies while streamlining administrative processes and minimizing costs for the company.

This material is intended for informational purposes only and should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor or plan provider.

Experiences of clients with life insurance products will depend on their unique facts and circumstances and we cannot guarantee the same results for all clients.