ADVANCED PLANNING

Captive insurance for the cash-heavy business owner

A privately held company can insure its own risk, take a deductible premium, and recover the dollars it never had to claim. We help you carry the case from qualification to close.

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01 · THE CONCEPT

Insure the risk, keep the upside

Captive insurance is built for business owners who are particularly cash heavy and susceptible to risk. The risk is mitigated and insured. The cost to insure is a premium that is fully tax deductible to the business, and the premium dollars go to work rather than disappearing to an outside carrier.

Premium is fully tax deductible to the business Deduction of up to $1.2MM per year Premiums invested in liquid positions Unclaimed dollars come back to the business

An honest read Captive insurance is one solution, not the only one. More often than not, premium finance is the more suitable option for a client. We will tell you which conversation fits the case in front of you before anyone signs anything.

02 · HOW IT WORKS

From premium to return

The mechanics are straightforward once the structure is in place. Four steps carry the money through the plan.

Insure the risk

The company identifies exposures it wants to mitigate and insures them through the captive.

Pay a deductible premium

The cost to insure is a premium that is fully tax deductible to the business.

Invest the premium

Premium dollars are invested in liquid positions in the market rather than sitting idle.

Recover what is unclaimed

If no claims are made, the premium dollars plus the investment appreciation return to the business.

03 · WHO QUALIFIES

The fit for a captive

This is a case-by-case conversation. The strongest candidates share a clear profile.

SM Small to mid-size, privately held

Owner-operated companies with the balance sheet and the appetite to insure their own risk.

LQ Liquid to fund the plan

Assets on hand to pay premiums and the administrative costs a captive carries.

RK Real risk to mitigate

Owners who want to insure and reduce exposure they are currently carrying uncovered.

TX Looking for the deduction

Owners who want a business tax deduction of up to $1.2MM per year through the structure.

04 · THE PARTNERSHIP

Case support and the tools to present it

Brokers Alliance has been independently owned since 1982, out of Fountain Hills, Arizona. Whether you write as an agent, an agency, an IMO, an FMO, or a BGA, you get the case design and the technology to take advanced planning to the client.

myAdvisor Cloud sales tools Client-ready presentations and resources Sales dashboard Case design across advanced-planning strategies (866) 872-9394

Ready to place the captive conversation in front of your client?

Get contracted with Brokers Alliance and we will help you qualify the case, run the numbers, and decide whether a captive or premium finance is the right fit.

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