Advanced Markets

• Foreign National

  Foreign national life insurance provides U.S.-based coverage for eligible non-citizens. Often times, these clients are considered high-net-worth, coming and going to conduct business or manage assets in the U.S. The high-net-worth foreign national market is steadily growing as these clients look for methods for wealth transfer and asset protection. 

  APIM is well-versed in the sale of foreign national policies from the pitch to placing the case in-force. Our network of carriers allows us to determine the most suitable and competitive products for your foreign national clients, placing you as the top contender to close the sale. Our in-house sales and case management teams will work with you to provide a seamless process despite the additional processing and attention that is usually needed on these cases. 

  Please note: premium financing may be available for these cases, but it may not be suitable for your clients. Also, certain occupations may disqualify clients from obtaining coverage due to the risks associated with their job responsibilities or travels. 

• Premium Finance

  Premium Financing is a strategic tool for high net worth individuals for large, permanent life insurance policies. Simply put, these clients take out a loan to pay premiums on the policy instead of liquidating their assets to pay for insurance. The strategy is designed for wealthy individuals with significant insurance needs for estate tax planning, business succession, retirement planning and more while retaining liquidity. 

  APIM is uniquely positioned as an experienced brokerage working with select carriers and lenders well-versed in applying this strategy. Our relationships with these entities ensure that we provide you the best solutions for your clients’ needs. Additionally, our in-house sales and case management teams help make the process seamless from start to finish. 

  Please note: premium financing may not be suitable for all wealthy clients. Clients must also meet the carrier’s underwriting guidelines and complete all necessary steps of the process. 

• Defined Benefit

  A Defined Benefit (“DB”) plan is a qualified retirement plan that specifies a guaranteed annual benefit paid to employees at retirement. Contributions are decided based on a set formula, which funds the account to reach the “target” benefit. These contributions are made by the employer, and the employer is responsible for all the investment decisions and risk within the plan. Plan types include Traditional DB, Cash Balance, and 412(e)(3).

  • Traditional DB

    A qualified employer-sponsored retirement plan that guarantees a benefit at retirement for its participants regardless of investment return. The plan is funded only by the employer, and contributions are generally tax deductible for businesses – giving the highest tax deduction for an employer. Employees’ future benefits are calculated based on employee salary with a focus on the last few years of employment and age.

  • Cash Balance

    A hybridized plan that follows DB plan rules but looks like a DC plan (refer to “Defined Contributions” below). Like a DB plan, there are required contributions within the minimum and maximum range. Employer contributions fluctuate based on asset performance, paying less during good years or paying more to compensate for any shortfall. Employees’ benefits consider all years of salary rather than just the last few years.  

  • 412(e)(3)

    A DB plan funded with insurance products, which include annuity-only, whole life only, or a combination of both. These plans have the maximum deductible contribution and place the investment risk with the insurance company. Contributions due are payments toward the annuities and life insurance investments that fund the retirement benefit. Limitations on the funding are based on the design of the investment vehicle.

  The benefits of DB include higher contribution limits, guaranteed benefits, and life insurance offerings as an additional investment option for the client. It is important to note that DB plans have a minimum and maximum contribution that must be paid each year, which means they are less flexible.

• Defined Contribution

  A Defined Contribution (“DC”) plan is a qualified retirement plan that define contributions paid during an employee’s active career. The final benefit an employee received at retirement is dependent on the contributions made and interest earned during those years. Contributions are made by either the employer, the employee, or both. Employees generally choose the amount they would like to contribute from their paychecks, and employers follow a formula noted within the plan document. DC plan types include: SEPs, Profit Sharing, and 401(k).

  • SEP

    SEP plans, also known as “Simplified Employee Pension”, is a qualified DC plan in which employers contribute to a traditional IRA for employees. Contributions are deductible up to 25% of total compensation. There are no filing requirements, are easy to set up, and allow flexible contributions.

  • Profit-Sharing

    Profit-sharing is also a qualified DC plan with employer contributions. Contributions are deductible up to 25% of total compensation and tax-deferred for participants until the money is distributed. Overall, the design is flexible – contributions are not required every year, and contribution amounts can change based on what the employer wants to make and how the definition in the plan document reads.

  • 401(k)

    A 401(k) plan is a qualified cash or deferred arrangement within a profit-sharing plan; it is also otherwise known as an “elective deferral”. Contributions are made by employees and taken from employee wages.

  DC plans have contribution flexibility, which allows contributions to vary yearly depending on the profitability of the owner. They are also easier to understand – like a savings account in function. Some plans allow for loans and accessibility during an employee’s career as well. Most importantly, balances are portable, so if an employee leaves, the benefit can be rolled over into a new employer’s qualified plan or into an IRA.

• Executive Bonus

  An Executive Bonus Plan, or Section 162 Plan, is a strategic tool for companies to reward and retain key talent. Under this arrangement, the employer funds a permanent life insurance policy for the employee, providing them a long-term asset and death benefit protection; the bonus is also considered tax-deductible to the business as an expense. Since the employee owns the policy, the paying company will generally only offer this benefit to key individuals within the staff rather than the entire staff.

  In certain scenarios, this plan could be an alternative to qualified plan benefits. Additionally, it allows closely held businesses with non-owner key employees to provide high-value benefits without giving out company equity or control. At APIM, we have specialists available to help design the ideal solution for your clients.

• Estate Planning

  As a life insurance agent, your role is to bridge the gap between a client’s hard-earned wealth and their desire for a lasting legacy. Your clients want to make sure the assets they’ve worked so hard to accumulate during their lifetime go to the people or organizations they care about. By partnering with APIM, you can simplify the “complex and tedious” nature of estate planning by positioning life insurance as a vessel for asset protection and transfer. 

  Estate planning can help achieve a variety of objectives including: Financial Support and Asset Preservation, Asset Distribution, Minimize Taxes and Expenses, Charitable Donations & more. For those who need Living Trusts, we can provide you with the resources you need to provide your clients the services without referring them elsewhere.