Multinational Corporation Business Planning
International Business Insurance
The multinational corporation remits a premium to an international insurance company; the international insurance company then allocates the premium to insure the following liabilities (in whole or part):
- Keyman Protection Insurance
- Funding Buy/Sell Agreement
- Pension/Retirement Benefits
Buy/Sell Agreement Insurance
A written buy/sell agreement is implemented to assure the
efficient transfer of a business in the event of the death of one of
the owners. Life insurance provides the necessary funding for the
buy/sell plan, addressing the situation for pennies on the dollar.
Keyman Insurance provides protection to the company against the loss of
a key employee or executive. Without an active business succession plan,
the passing of an owner can have a catastrophic impact on a company
and family business. It can lead to a rush for a replacement and can
result in a transfer of ownership to the surviving spouse. The interests
of the surviving spouse may run counter to the interests of the business,
particularly where the objective might be income/liquidity as opposed to
the preservation and development of the company.
Assets placed inside an international variable annuity contract
accumulate on a tax deferred basis. These assets can be
earmarked for retirement purposes and distributed at such time.