The Succession Plan

Our most recent product combines key person life insurance with our premium finance program, giving you and your company peace of mind if you were to die unexpectedly- while at the same time it builds cash value, which builds equity over time, much the same way your house does.

The Succession Plan uses a technique that addresses both the issues of business preparedness and wealth preservation. Finally a solution that makes business savvy sense and gives you the peace of mind

What is it? A properly structured permanent life insurance policy that protects business continuity and accumulates wealth at the same time while using a technique that actually costs the client very little. This technique is called Wealth Preservation with Business Continuity Life Policy Plan, but we call it The Succession Plan.

In the chart below you can see an illustration that was prepared for a 33 year old male who qualified preferred and who doesn't use tobacco products. He is covered for 5 million in life insurance because his business is worth 2 ½ million and his earnings potential over the next decade will be around 2 ½ million. The finance company pays $612,000 on year one, which funds the policy for good, no additional payments are required. Of course the finance company will want their money back plus interest, which is 4.5 % in this example. But as you can see, after year 9, you actually have money starting to build up. And after year 19, you have over $500,000 built up that is yours tax free- this is even after repaying the finance company their portion. This cash accumulation is the equivalent of building equity in your house.

So who is this for?

This technique and concept works best for Clients with a net worth of over five million or business owners that have future earnings potential of this amount, and a person who is able to secure a life policy with a standard rating; however, some impaired health risks are generally acceptable in many cases. Unlike typical premium finance programs, the Succession Plan will work with all ages. We are so excited about this new technique and how it is changing lives. Please visit us on the Internet or call us today to start your Succession Plan.