Business Insurance
In today's marketplace, businesses need an ally. Today, Bank of Arizona is that leader. Bank of Arizona responds with prompt, personalized solutions and puts more financial resources at your fingertips than any other regional institution. From state of the art employee benefit programs to estate planning for business owners, our staff takes the time to gather in-depth insight into your business goals. Our experienced team of professionals have access to a variety of planning tools to help your business flourish.
Employee
Benefits
Group Life, Medical, Disability and Dental Insurance
The cost of providing employee benefits are escalating - with a direct
impact on profitability. The employment marketplace demands medical
benefits and disability income to attract and retain qualified personnel.
At Bank of Arizona Insurance Services we can help you select flexible and affordable
insurance plans to meet the needs of your business - large or small.
Both fully insured and self-funded plans are available. Our experienced
specialists will design a program to help you control costs.
Retirement Plans
A business retirement plan is an intelligent and profitable investment, reaping tax benefits for business owners. Choosing the best retirement plan can be a challenging task. Our professionals will help you select a retirement plan designed to fit your business and help employees plan for retirement. You can select traditional defined benefit plans and defined contribution plans, such as 401(k) plans, SIMPLE plans, SEPs and SARSEPS. We can provide the tools you need to actively manage your plan. Our options include a wide range of investment choices, customized employee education/communication programs, plan administration, daily recordkeeping and 24-hour account information.
Cafeteria Plans
Through a Section 125 Cafeteria Plan, your employees can enjoy pretax spending for certain benefits. Expenditures for child care, eye glasses, dental expenses, disability insurance, dependent health insurance premiums and deductible/co-insurance charges not covered by their group plan are included. Typically the employer can save money by not having to pay FICA taxes on amounts put into the plan. As an added service, we offer your employees supplemental insurance programs to fill gaps that might exist in their benefit program. These supplemental programs provide a significant enhancement to your employee benefit program, and employees usually pay 100% for these programs.
Golden Handcuff
Deferred Compensation Plans
Most businesses have key employees they would like to tie to the business on a long term basis. They commonly refer to this concept as "Golden Handcuffs." Many employers will limit contributions to qualified retirement plans for a variety of reasons. However, frequently they put money away for key people if the individual agrees to work a few years before becoming vested. We can design plans specifically for your business that give you maximum retention possibilities with your key people.
401(k) Retirement Plan
Supplement for Highly Compensated Executives
Planning for retirement can be a challenging for anyone. Increasingly stringent tax laws concerning qualified retirement plans, such as 401(k) plans, are limiting tax-deferred investments for the highly paid executive. Key personnel affected by limits on contributions to qualified plans need services designed specifically to help them prepare for retirement. The Executive Retirement Plan from Bank of Arizona is just such a tool.
Employer/Owner
Programs
Line of Credit Insurance
Term life insurance is extremely inexpensive in today's market. It really makes sense to insure key loan guarantors to allow fast liquidations on all, or a portion of, business debt. Certain carriers allow substantial discounts on premiums if paid in advance. Through significant discounting it may make sense to fund the premiums through business loans. We work closely with you and your lender to design a plan that works best for you.
Capital Transfer Concepts for Business Owners
All successful business owners want to find ways to use their business to make money, then transfer the money out of their business on a tax advantage basis. We have such plans available. The individual owns the asset yet the business makes the payments. The individual has limited reportable income because of the transactions. At retirement the individual enjoys tax-free income with some of the plans.
Key Employee Life Insurance
The most valuable asset of any company is its key employees. If a key employee dies prematurely, frequently their contacts, network, technical skill and/or customer base dies with them. This situation can result in tremendous financial losses. You can reduce losses, through business owned life insurance, either permanent or term. Often key employee life insurance is integrated with deferred compensation plans using the same insurance instruments. We can design and set up these types of programs.
Employee Stock Ownership Plans (ESOP)
Extracting equity from the business can be difficult for a majority
shareholder of a closely-held business. Often there are few potential
buyers for the enterprise. The employees of the firm can become the
mechanism to buyout, fully or partially, the controlling shareholders.
IT is done through the establishment of an ESOP. The ESOP uses the
assets of the business to borrow money to purchase the shares of the
controlling shareholder. This is a way to transfer ownership of a
business enterprise to the employees and yet give the owner a way
to create liquidity from an illiquid asset. Often, the owner for a
period of time can defer taxes on capital gains.
Charitable Remainder Trusts Grow in Popularity as an Effective Estate
Planning Tool
By establishing a Charitable Remainder Trust, the portion of your wealth that typically goes to taxes is redirected from taxes to charitable gifts. A charitable Remainder Trust can be an effective tax saving tool when selling an appreciated asset such as real estate, stock or your business. The tax benefits can involve income and estate taxes. Potential benefits include, the avoidance of capital gains on the sale of property, a current income tax deduction, an increase in current income, the establishment of a charitable legacy and an increase in the value of assets transferred to heirs. The purchase of life insurance at the time assets are transferred to a Charitable Remainder Trust is often advisable. We can help in determining whether or not this approach makes sense for you and serve as trustee through Bank of Arizona, Trust Division.
Estate Planning For Business Owners
Business Transfer Issues Upon Death, Disability or Retirement
Most successful business owners devote their lives to building their business. Planning what will happen to the business in the event of death, disability or retirement is often overlooked. Every closely held business should have a succession plan in place with proper documents supporting the plan. Bank of Arizona can help you with this process.
Use of Buy-Sell Agreements In Business Planning
Under a buy-sell agreement, partners and/or co-stockholders in a business agree to by or sell their respective interests to the surviving parties upon their death, disability or retirement. The agreement specifies the terms of the sale and establishes a fair value of the business. Buy-sell agreements are often funded by an insurance policy taken out on the partner's or shareholder's life. Life insurance and lump sum disability insurance are vital to ensuring that money is available to carry out the plans.
Use of a Living Trust
Business assets are complicated assets to transfer. A revocable living
trust can be an effective problem solving tool. With a living trust,
you can transfer your business assets to the trust while retaining
control of the assets for the remainder of your life. Assets held
in trust avoid the expense and delay of probate - a process that easily
can take up to two years. Debts and taxes still have to be handled,
but everything can be done quickly, privately and at less expense.
Upon your death or incapacity the successor trustees named in the
trust document assume the authority to efficiently transfer your business
without a complicated court procedure.
Who to Contact
Risk, Affiliation, Offering Entity Disclosure
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