Agape Insurance Brokers
Integrity, Experience & Professional

Insurance Concepts
Individual Insurance Concepts

Here are the most common reasons that consumers buy life insurance:

Pension Maximization

If you participate in a traditional pension plan (known as a defined benefit plan) with your
employer, you may receive monthly benefits from the plan after you retire. These benefits are generally based on your age at retirement, as well as your years of service and your average earnings with the company. Depending on your plan’s provisions, you may have more than one payout option to choose from. You want to select an option that will provide you with sufficient retirement income. In addition, if you are married, you want to be sure that your spouse will have sufficient income in the event that he or she outlives you.

When you retire, a defined benefit plan must offer you and your spouse a joint and survivor
annuity. If your spouse consents in writing, you can generally decline the joint and survivor
annuity and elect a single-life annuity instead. Some defined contribution plans offer similar
options, so consult your plan administrator or benefits department if you participate in one of
these plans.

With a joint and survivor annuity, payments continue as long as either you or your spouse is
alive. When one spouse dies, the benefits paid to the surviving spouse generally cannot be
less than 50 percent (or more than 100 percent) of the joint benefits. By contrast, with a
single-life annuity, payments last for your lifetime and cease upon your death. For example, if
you received one payment after retirement and then died, the single-life annuity would provide no further payments from your pension. Your spouse would receive nothing.

So why would you choose a single-life annuity knowing that payments will stop at your death?
One reason is that the single-life annuity generally pays a larger monthly benefit than the joint
and survivor annuity. This is because the payments are designed to last for a smaller number
of years (i.e., one life expectancy instead of two). Retirees who want to maximize their monthly income sometimes choose the single-life annuity for this reason. The retiree can then use the additional income to purchase life insurance with his or her spouse as the beneficiary, thereby protecting the spouse’s financial future. This strategy, commonly called pension “maximization” using life insurance, may be appropriate for you. 

Mortgage Protection

It means that you have a life insurance to pay off your outstanding mortgage if a premature death occurs to payer(s) of the mortgage.  

Business Insurance Concepts

Key Person Insurance

Every company has key executives that they depend on for  important functions and goodwill. This will include the likes of the CEO, CFO, CTO, President, Chairman of Board etc. If a premature death occurs to one of them, the financial impact on the company can be devastating or irreplaceable. Having the life insurance on them will compensate the company for loss of goodwill, time it takes to find the right replacement and any other losses associated with the death.

Business Succession Planning
Regardless of company structure as a C corp, S corp, LLC, LLP, General Partnership, a company will only be as successful as the vision of the CEO and owner. As such, if something happens to the owner and/or CEO of the company, the value of the company can plunge overnight. As such, a predetermined plan need to be in place to make sure that the company will have the resource, cashflow, backup personnel in place to takeover running of the company if the owner/CEO retires, becomes disabled or dies prematurely. Life insurance will have a significant role is providing the resource when that happens. Eg. providing the resource for a cross purchase by a key employee or minority shareholder.

Disability Buy-Sell 
Fund a sell off of company if the owner becomes disabled and unable to continue operating the business. Having a documented plan in place will protect value of the company.

Disability Overhead
Pays for the overhead expenses of the company for a fixed period if the owner is disabled.

Discriminating Executive Pension Plans

Pension plans customized for top executives who wish to exclude as many other employees as possible. Most suitable for top heavy corporations.

Buy / Sell Protection

If you have a partner in business, you have a need for insurance so that in the event of death or disability, you can buy out your partner's interest without having to take out a loan or liquidate company assets. This is also important where children and taxes are involved.

Flexible Spending Accounts (FSA)

Employer-sponsored flexible spending accounts (FSAs) are benefit plan arrangements that allow employees to pay for certain health care or dependent care expenses on a pre-tax basis.  There are two FSA options. A Health Care FSA is an alternate way of paying your share of your health care costs. In the same manner, a Dependent/Child Care FSA reimburses you for expenses for dependents and childcare which are necessary to allow you and your spouse to work.

When you create an FSA, you choose to have a specific amount of your annual salary withheld from your paycheck and deposited to your FSA. These withholdings are on a pre-tax basis.    Flexible Spending Accounts (FSA’s)  are benefit options designed to increase your disposable income by reducing the amount of taxes you pay. An FSA enables you to use pretax dollars to pay for qualified health care expenses which are not reimbursed under any health care plan or insurance plan, while a Dependent Care FSA pays for your qualified dependent/child care expenses. However, FSA funds are not interchangeable.
Flexible spending accounts offer significant tax advantages. Employees do not pay federal income, state income, or FICA taxes on the salary they contribute to a FSA plan. Employers, in turn, do not pay matching FICA (7.65%) and FUTA taxes because employees' gross incomes are significantly reduced. A health care FSA, which allows employees to pay co-payments and deductibles with tax-free dollars, can go a long way to helping employees shoulder their share of the burden. FSAs are excellent tools for employees in savings significant tax dollars especially in this day of rising health care costs.

Group Health

We are committed to health insurance for both our commercial customers, who need group coverage for their employees, as well as the individual or family that needs coverage.

With the changing face of health insurance in today's market, we are staying abreast of the latest developments that will affect the coverage you expect as well as the cost impact upon you. We have the best health insurance markets available in our area, and we will always present to our customers the best options at the best price available

I have helped companies to save as much as 30% on premium with very little impact on benefits by introducing GAP plans, Health Reimbursement Accounts etc. Call me if you need further clarification. 

Tax Deductible Life Insurance 

Under the right circumstance, life insurance premium can be tax deductible. Depending on your objectives, it may or may not fit you and your company. There is plenty of upside to doing this...but it will only fit very fine niches in the marketplace. Examples of this may be achievable through

Corporate Split Dollar
Section 79
Section 419(e)
Restricted Property Trust
Charitable Remainder Trust

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