Captive Insurance Company
Plan 7 is for business owners that are particularly cash heavy and are susceptible to risk. Risk is mitigated and insured. The cost to insure is a premium that is fully tax deductible to the business. The premiums are invested in liquid positions (stock market). If no claims are made, monies used for the premiums + investment appreciated are returned back to the business
Although this is one solution for clients, more often than not Premium Finance is a more suitable option for clients.