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Oliver Financial has helped hundreds of individuals and corporations preserve and enhance their net worth through the use of:
LEVERAGED INSURED ANNUITIES
Oliver Financial takes advantage of this estate and financial planning vehicle to meet the objectives of the client who is typically over 60 and who wishes to include any one or combination of the following:
- Eliminate Capital Gains Tax on death under the Deemed Disposition rules. AND/OR
- Create a Capital Dividend Account which will enable the next generation to pay out tax free dividends from their corporation and thus free up "trapped surplus," AND/OR
- Generate a double digit after-tax rate of return on a small cash investment.
- Reduce current income taxes payable on taxable income.
The target market is for business or real estate owners over the age of 60 who may have a capital gains tax exposure. This exposure can arise from real estate, a CCPC or public company shares. The concept still produces other benefits even if there is no Capital Gains tax exposure. It is extremely effective for a client who wants to create a Capital Dividend Account for his family at no cost, so that they may free up trapped corporate surplus.
This is an elegant strategy which calls for advice of the tax accountant and/or lawyer and Actuary. It requires careful planning and customization to the unique circumstances and needs of the client. The strategy is endorsed by several major accounting and legal firms.
Oliver Financial can take care of this for you… contact us, today!
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UNDERWRITING OF DIFFICULT CASES
Oliver Financial has established itself as an industry leader in getting very favorable insurance offers from a variety of insurance carriers. In fact, many agents come to us after their clients have been declined for insurance coverage or after their clients refused the expensive price that was offered to them by other insurance companies.
How can Oliver Financial succeed while others have failed? It happens because our company places large volumes of insurance with different carriers, year after year. We have been able to establish preferential business relationships with many insurers; in many instances, we have direct contacts with head office underwriters.
We have access to a number of partner companies which have teams of dedicated underwriters to assist with medical opinions so that we can logically and successfully argue borderline cases with the home offices underwriters. Since medical results interpretation is very subjective, the expertise that we bring is highly valuable. In fact, we currently receive many referrals from a major insurance company when they must decline coverage for an applicant or when the same individual rejects their high-priced offer.
Oliver Financial's Underwriting ExpertsTM division can take care of this for you… contact us, today!
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BACK TO BACK POLICIES
Oliver Financial takes advantage of this financial planning vehicle to meet the retirement and cash flow needs of individuals over the age of 60 who have cash invested in some liquid assets such as stocks, bonds, gics and other short-term investments. It is extremely effective for a client who wants to enhance his or her net of tax income and wants to lock in a higher return for his investment.
A back to back policy, as it is commonly known in the industry, is simply a life annuity that is bought by a single lump sum payment with the upfront cost insured (backed) by an insurance policy. This financial arrangement offers several advantages over the alternative of buying a bond:
- The overall after tax yield is generally higher. Stated differently, the net after tax income to the individual is generally greater than the after tax interest payment received on the bond.
- The net after tax income is guaranteed for the life of the individual. This takes away the uncertainty associated with GIC s where the net of tax interest payment is only guaranteed up to the end of the term of the GIC. The owner can really have peace of mind.
With a back to back financial arrangement, there is a regular income paid from the life annuity that is reduced by a insurance premium payment leaving still a steady positive flow of income and when the owner dies, the annuity payment stops and an amount generally equal to the single premium paid to buy the annuity is paid to the deceased's estate or a designated beneficiary.
This is an elegant strategy which calls for advice of the tax accountant and/or lawyer and Actuary. It requires careful planning and customization to the unique circumstances and needs of the client. The strategy is endorsed by several major accounting and legal firms.
Oliver Financial can take care of this for you… contact us, today!
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PREMIUM FINANCING
WHAT IS PREMIUM FINANCING?
Just as we might lease our car or take a mortgage on our house to assist with acquiring the asset, it is possible to finance a Life Insurance premium.
It is a very interesting alternative for those who either do not have the cash readily available to pay their insurance premiums or who do not want to utilize their liquid asset for this purpose.
Quite often, businessmen earn a high rate of return on capital in their business. In these situations, it makes more sense for them to use other people's money to fund their life insurance policies. We have arranged for institutional lending of money to owners of life insurance policies who wish to finance their policy premiums.
WHAT ARE THE TYPICAL TERMS OF THE FINANCING?
The lending institution usually has to pre-qualify the loan by doing the usual background credit check on the primary borrower and will only accept, as the primary security, Insurance policies issued by qualified, highly-rated Insurance Companies.
The loan interest rate is usually variable, perhaps fixed one year at a time (although longer term fixed rates are available) and is normally a function of the one year Libor* rate, such as Libor rate plus 2%. Interest can be paid annually or it can be capitalized onto the loan balance. If the interest is capitalized, the loan balance increases substantially over time and thus decreases the net pay-out, after repayment of the loan, to the estate on death. The loan is normally open and can be paid down without penalty.
WHAT SECURITY OR COLLATERAL IS PLEDGED FOR THE LOAN?
The primary security is the insurance policy, however additional collateral is usually required. This collateral can be in the form of a letter of credit from the borrower's bank. In many cases, it is possible that over time this collateral requirement will be reduced to zero and the Insurance policy would then be the only security. In some situations, no additional collateral is required, but the borrower must give a personal guarantee of the loan to secure the lender.
We have a variety of lending arrangements available, so we find the one that best fits the borrower's situation.
SUMMARY
Financing of Life Insurance premiums is a very efficient method of acquiring a Life Insurance policy and allows the insured to use assets for other purposes instead of tying them up in his policy. There may be tax advantages of borrowing money to pay the premiums as well, depending on the circumstances.
* The Libor rate stands for the London International Bank Overnight Rate
We would be pleased to advise our clients on premium financing and have many options for them to consider.
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MAXIMIZING ESTATE VALUATION
Oliver Financial takes advantage of this financial planning vehicle to enhance the total value of a person's estate upon his or her death. This is a great strategy for individuals over the age of 60 who have a substantial amount of money invested in some taxable liquid assets such as stocks, bonds, gics and other liquid investments. It is extremely effective for clients who have accumulated enough wealth so that they do not worry about meeting their retirement financial needs but are rather concerned about maximizing the large residual wealth that will be passed on their his heirs upon their death.
The structure of this financial arrangement offers several advantages over the alternative of leaving unneeded pools of money invested in taxable investments:
- The amount passed on to the heirs is significantly higher, sometimes by as much as 300% in the case of early death.
- During the lifetime of the client, all amounts invested that were previously subject to annual accrual tax now accumulate on a tax deferred basis.
This is an elegant strategy which calls for advice of the tax accountant and/or lawyer and Actuary. It requires careful planning and customization to the unique circumstances and needs of the client.
Oliver Financial can take care of this for you… contact us, today!
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Have you outlined a detailed plan for financial security? Rest easier knowing your family will be taken care of.
It's never too late to start... contact us, today!
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