Executives and Professionals earning high incomes face unique challenges in protecting their families. More often than not, the solution is beyond the scope of employer benefits and off-the-shelf products. High incomes limit truly desired participation in employer-sponsored savings vehicles leaving behind an insufficiently funded retirement plan. Group term life insurance policies seldom achieve the goal of providing current and future income protection for the executive’s family. Typical disability coverage is limited to an income that is well below a normal high income earner’s needs, and the thought of actually needing long term dependent care seems so far off into the future that most people disregard it and fail to realize the extreme cost of the care and the burden it places on their loved ones.
BEJS can provide certainty around these challenges with customized plans based around wholesale priced insurance products that fall outside of the traditional “one size fits all” mentality. These customized, yet practical, plans can provide tax-free supplemental retirement income; tax-free income protection in case of death; supplemental disability protection; and the assurance that today’s business executive will not be a burden on his/her estate and/or family in later years.
Safeguarding Income
BEJS provides valuable benefits to executives and professionals in safeguarding their income. In cases where individuals seek to protect their family from the loss of income due to death or disability, BEJS offers a comprehensive approach.
Through a facilitated process, BEJS helps clients determine the financial needs their family would have in such circumstances, evaluates alternative solutions, and implements a tailored insurance portfolio. The outcomes often include:
- Retirement Income Accumulation: Clients can accumulate assets to fund a retirement income stream, supporting their long-term financial objectives.
- Adequate Disability Coverage: Clients have access to sufficient disability coverage, ensuring financial security in the event of disability.
- Income Protection: Clients can protect their family from the loss of substantial income with portable coverage, typically at a cost representing a small fraction of their total income (e.g., 1%).
BEJS assists executives and professionals in creating a robust financial safety net, allowing them to focus on their careers and long-term financial goals with confidence, knowing that their income and family’s financial security are protected.
High Limit Disability Income
BEJS can aid executives and professionals by offering High Limit Disability Income solutions. In scenarios where partners in a firm are concerned about the financial impact of a disabling illness or injury, BEJS can assist in creating a customized disability insurance solution.
Working with specialized disability consultants and insurers like Lloyd’s of London, BEJS can design an affordable plan that provides several advantages, including:
- High Monthly Benefits: Executives and professionals can access a very high monthly disability benefit, helping them maintain their lifestyle and financial security in the event of disability.
- Lump Sum Payout: After a defined period (e.g., 24 months), the plan may include a substantial lump sum payout, providing further financial support.
- Partnership Continuity: The firm’s partnership can continue with confidence, knowing that in the event of a disabled partner, there’s a financial safety net in place to buy out the affected partner while ensuring financial stability for them and their family.
BEJS helps executives and professionals protect their financial interests and the continuity of their businesses in the face of unexpected disabilities.
Supplemental Retirement Income
BEJS offers aid to executives and professionals seeking solutions for Supplemental Retirement Income. In cases where highly compensated individuals find their 401(k) savings insufficient for retirement, BEJS can provide a tailored approach.
Here are some general benefits associated with the solutions BEJS can offer:
- Increased Contribution Limits: BEJS can design supplemental, tax-advantaged policies that allow individuals to contribute significantly more than the limitations imposed by qualified plans like 401(k)s.
- Tax Efficiency: While contributions may be after-tax, the growth within the policy is tax-deferred, and policy distributions are typically received tax-free, enhancing overall tax efficiency.
- Investment Flexibility: Clients can allocate policy values across various asset classes and make reallocations without incurring taxes, providing flexibility in managing their investments.
- Creditor Protection: Policy values often enjoy protection against creditors in the event of bankruptcy or unforeseen lawsuits.
- Death Benefit: The policy’s death benefit can serve as a substantial financial safety net for the family’s retirement needs, ensuring financial security in the event of the individual’s premature death.
- Portability: The policy is portable, not constrained by the limitations of qualified plan doctrine, allowing individuals to take control of their retirement savings without restrictions.
Overall, BEJS offers executives and professionals a versatile and effective means to supplement their retirement savings, providing financial stability, flexibility, and tax advantages beyond the constraints of traditional retirement plans.
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.