Insurance Services

This includes executive coverage that surpasses group term life limits and are often portable, allowing executives to take their coverage with them, throughout their careers and into retirement.

A non-qualified deferred compensation plan enables deferment pre-tax; executive salary, bonus or incentive pay can be used as contributions to a life insurance plan in excess of typical qualified retirement plan’s limits.

This plan allows business principals to use a combination of the life insurance policy and other assets as collateral for a loan to fund life insurance policies. Premium financing is typically appropriate for clients with large estates and significant insurance needs who want to finance the payments with little or no out-of-pocket costs; it is particularly appealing to those reluctant to liquidate high-yielding assets to make policy payments. The program typically requires:

• A recourse loan used to finance premiums
• Personal guarantees from the borrowers
• Additional collateral, in excess of the cash value of the policy
• Annual collateral reviews

Many employee-group-sponsored disability coverage plans do not replace even half of an executive’s base salary and variable compensation. Reduce the amount of unprotected earnings for your organization’s key executives with a disability income insurance plan.

Executives of all ages should include long-term care insurance as an essential part of an asset protection program.

The death of an owner or partner of a business can cause financial problems and hardship for the business. Allow your Flagstar Advisors Financial Advisor to bring together the resources necessary for members of a partnership and stockholders in closely held corporations to assure that funds are available to transition ownership of a business in the event of a partner retires, becomes disable or dies. Advantages of using insurance to fund the transfer of your business include:

• Complete pre-arranged financing
• Federal income tax-free death proceeds
• Cash values for buyout due to retirement or disability
• Purchases funded with (time value) discounted dollars
• Strengthened credit position