ALTERNATIVE RISK TRANSFER STRATEGIES
Traditional risk transfer techniques involve purchasing conventional, guaranteed-cost insurance policies. Although this provides effective risk transfer, it offers little control over your claims and rising premium costs. Micro Captives are an effective, efficient and tax advantaged alternative.
MICRO CAPTIVE BENEFITS
WHAT IS A MICRO CAPTIVE INSURANCE COMPANY AND HOW DOES IT WORK?
A Micro Captive is a captive insurance company operating with an annual gross premium up to $2.2 million. In the United States, qualified under Internal Revenue Code 831(b), a Micro Captive will pay tax only on investment income and not on underwriting profit. The underwriting profit can either be returned as a dividend or subject to limitations prescribed by the IRS, remain in the captive as surplus. The Micro Captive must qualify as a bona fide insurance company and serve a business purpose.
IRC SECTION 831(b) PROVIDES THAT:
TAXATION (Consult with your Tax Advisor):
IS AN 831(b) MICRO CAPTIVE SUITABLE FOR YOU?
To help determine if a Micro Captive is right for you, Cherry Bekaert Benefits Consulting will perform a full review and actuarial analysis of your current program (including incurred and realized claims). Our certified insurance counselors will deliver a feasibility study that forecasts your risks and potential to obtain necessary coverage and capture savings through a Micro Captive Plan.
MICRO CAPTIVE INSURANCE COMPANY COVERAGE AND POLICIES
The insurance in a Micro Captive is customized coverage designed to expand, complement, and close gaps in existing insurance policies.
EXAMPLES OF MICRO CAPTIVE COVERAGE:
EXAMPLES OF MICRO CAPTIVE POLICIES:
TAKE CONTROL AND INCREASE YOUR BOTTOM LINE WITH AN 831(b) MICRO CAPTIVE
Contact one of our risk advisors at: 411risk@CherryBekaertBenefits.com to learn more about the lower costs, broader coverage and greater control that can be yours with Micro Captive Insurance.
Cherry Bekaert Benefits Consulting, LLC is a Chernoff Diamond Affiliate. Chernoff Diamond & Co., LLC is a Managing Member of Cherry Bekaert Benefits Consulting. Chernoff Diamond & Co., LLC offers Investment Advisory Services through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. Check the background of this Firm and/or investment professional on FINRA's BrokerCheck. Chernoff Diamond & Co., LLC is independently owned and operated. Chernoff Diamond & Co., LLC, is a member of M Financial Group. Please visit mfin.com/DisclosureStatement.htm for further details involving this relationship.
Chernoff Diamond and their registered representatives are currently licensed to sell variable life and annuity products, as well as other securities products, in the states of California, Connecticut, Florida, Georgia, Maryland, Massachusetts, Missouri, New Jersey, New York, North Carolina, Pennsylvania, Virginia, Wyoming and Washington DC. Residents of other states should consult with a local registered representative for securities products.
Proper state registration is mandatory prior to conducting business in any state.