Insurance captive is one of the wealth protection strategies that investors can use to protect their wealth. Captive insurance refers to an insurance company wholly-owned and controlled by the insureds. Under this arrangement, it’s like self-insurance where instead of paying commercial insurances, investors use their own resources and capital to assume a portion of the …
Want to learn what it takes to be considered a valid captive? Well, the Internal Revenue Service (IRS) says you’ll need two things: Risk distribution and risk shifting. These are also two elements that make a captive deductible for the IRS.While risk shifting is an easy way of taking off the balance sheet of one …
Captive insurance companies are primarily responsible for underwriting risks for their parent company. The sole purpose of creating captive insurance companies is to manage risks. However, there are other things the parent company stands to gain from the captive. Similarly, there are two types of captives: Regular captives or 831(a) captives and 831(b) captives. Regular …
Learn the secret that savvy companies use to insure themselves instead of throwing money away month after month.