Providium Executive Benefits Division
Providium Executive Benefits Division provides business succession planning and advisory services for businesses of all sizes.
With our full team of experts, Providium is equipped to manage all aspects of your personal and professional financial worlds.
Your Providium representative will monitor your progress and stay current with changes in tax laws, regulations, and other factors that affect your personal and business environment.
It all starts with helping you:
- Assess your current financial situation
- Clarify your objectives
- Define strategies to achieve your goals for yourself, your family, and your business
Rely on Providium for the latest in Buy-Sell planning, Key Person Insurance, and Deferred Compensation plans. With our team of experts, you can count on a successful business and a secure retirement.
Buy-Sell Arrangements
Buy-sell agreements ensure continuity of ownership and business operations when an owner dies, becomes disabled, or retires. It secures a seamless transfer of ownership and lets the business continue without major interruptions. A buy-sell arrangement is a written agreement between two or more owners of a business stating that one or more owners are obligated to buy the business interest from the other owner upon certain life-changing events. Life insurance proceeds are used to purchase the shares when the buy-sell arrangement is set up as a Stock Redemption plan. When one of the owners retires or dies, the business pays the other owners money from the life insurance proceeds, which the remaining owner(s) uses to purchase the stock of the selling shareholder.
Executive Bonus Plans
As an employer, you may offer life insurance, on a tax-deductible basis, to a select group of employees. There are two types of Executive Bonus Plans: Single and Restricted. With Single Bonus Plans, you give your employee(s) an annual bonus that amounts to the policy premium. Your employee(s) pays the premium with his or her bonus but pays the tax on the bonus out of pocket. You may also increase the amount of the bonus to cover the taxes and expenses as well. With Restricted Bonus Plans, your employee(s) gives you greater control over the life insurance policy. The deductibility and tax liability remain the same as with Single Bonus Plans.
Non-Qualified Deferred Bonus Plans (NQDC)
Employees with high incomes may want to consider a NQDC. These supplemental executive retirement plans don't qualify for tax benefits associated with profit sharing and pension plans. Instead, with a NQDC, your employee defers a portion of his or her income to a future date-usually retirement. As an employer, you don't have to set aside assets to fund this benefit: you may use life insurance to fund the NQDC program.
412(i) Fully Insured Defined Benefit Plan
If you're 45 years or older, you should contribute as much as you can to your retirement savings. That's what makes the 412i plan such a good deal for you: it provides guaranteed benefits of a lifetime income, hearty tax deductions, and allows your savings to accumulate tax-deferred over the years. These plans are funded entirely with life insurance and annuities.
Business Insurance Analysis
Discover your best opportunities: fill out and submit our Business Insurance Assessment Form.
Business Insurance Assessment
Please take a moment to complete the brief form below. This information will help us begin to create a plan for your business. Thank you! We look forward to partnering with you!
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